Tax Liens in Baltimore City

[Marissa Cowan]

Hello All!! It has taken me some time to post to BiggerPockets but here I am!! :). I have a few questions about the tax lien process in Baltimore City and would like to glean from people who know the system. I am trying to buy my first tax lien properties over the counter for Baltimore City in the next couple of months. I wanted to know if anyone had some advice on finding a good property? I have looked at the tax lien list for 2017 and hopefully they still have some good properties left over. I am looking at areas that are close to hospitals or universities (yes I know that is broad but I haven't narrowed it down yet). I was looking for something close to John's Hopkins on E. 33rd St. I want to know if there is a way for me to inspect the house even though I am not allowed to go into it? I know I need to check for structural damage but my concern is purchasing a property that has severe problems on the inside I cannot see because I didn't get a chance to go inside before I purchased the lien.

Also I would like to know if I purchase a lien and find out the property has too much damage for me to fix, is there a way for me to sell it? I do not have a lot of cash right now so I am only trying to find properties that need cosmetic upgrades.

If anyone has a good tax sale lawyer to help me foreclose on the properties could you please leave their contact information, I would greatly appreciate it.

Any other information anyone has to offer about the tax lien process for Baltimore City (over the counter) would be greatly appreciated.

My main focus is to buy multi-family properties so that I can live a comfortable lifestyle and retire early. If anyone has any suggestions on purchasing multi-family properties as well please feel free to share the information. I greatly appreciate it. :)

Thank you all!!

[Nathan Gough]

I spoke to Anthony Onwuanibe at the BWI Meetup tonight. Sounds like someone you might want to talk to: http://onwuanibe-law.com/site/taxsale.html

[Ned Carey]

@Marissa Cowan I got my start in tax sale with two leftover Baltimore city liens. Both turned out to be home runs. Anthony Onwuanibe is the attorney that got me started. Anthony does a lot of real estate work, not just tax liens. 

There is about zero chance you will find anything near Hopkins on 33rd as a leftover lien. 

I often look in windows of vacant houses. Usually I  just use the exterior condition (front and back) as an indication of the condition inside. I assume it will need significant rehab. If you get a property that is more work than you want to handle, you can always sell it. That is my main strategy, foreclose and then wholesale it off. 

When you have picked out some liens to buy you go to the Able Wolman building 200 N Holiday st. (same place you buy the leftover list) Six months after the sale you buy them from the Real Estate office in city hall. They will let you ask about three liens at a time. You tell them which ones you want and they will give you an amount due on the date you say you will return. The price changes every day due to interest. You need to bring certified funds when you come back to purchase them. 

There were a couple of threads specifically about Baltimore leftover liens from a few years ago. A search may bring them up. One was titled "another tag team BP deal"

[Rich Baer]

@Marissa Cowan

Why go to to time and expense to buy a left over tax lien for $2000. Its left over for a reason. Even if you found a decent structure its going to be in the worst part of town. You will have to put at least $30K into it. If you want to deal in junk in bad neighborhoods you should take an easier approach. Go to the MLS and buy a $30K house and put 2K into it. Same result.

[Marissa Cowan]

Mr. Carey THANK YOU so much for replying to my  message. I didn't go to get the left over booklet after the tax sale this year. All I have is the original posting of the tax sales the city made public. I decided I would just use that list instead of driving to Baltimore City to get the booklet of leftovers. When I called to inquire about the left over listings a lady told me they "might" have some more booklets but she could not say for sure if they had any. I live about 50 minutes away and I didn't see the need to drive down there for a booklet that "might" be available. If you think I should get it let me know and I will take off work to go and get it.

I want to make sure I understand a statement you made above. The day that I decide I want to go buy a tax lien and go to the office in Baltimore City, I don't actually buy the lien that day? Why do I come back on a later day to pay for the lien? Also why does the price change daily? I thought since I will be buying the tax lien over the counter I will be paying for the back taxes at face value. Is that not the case?

I am assuming also I need to bring a certified check from my  to the real estate office as well correct?

[Ned Carey]

@Marissa Cowan the reason to buy the book is if you are going off the online listing many will have redeemed or bought by other investors. 

You can buy the lien the same day, however they have to give you an amount and you have to get back the same day with certified funds. The reason the amount changes daily is you pay face value plus the interest that has accrued since the tax sale date. 

Once the liens are transferred to the real estate office, for bureaucratic reasons the lien is more work for the city. You call them on the phone and give them the list you want and they research it and get back to you if it is available and the amount due the day of the appt to meet them.