How to Invest in Howard County, Maryland Tax Lien Sales

You can earn a solid 18% return by buying tax liens at Howard County, Maryland’s annual tax auction every May. Investing in tax liens is a smart way to potentially earn high returns. Howard County, Maryland, offers an attractive 18% annual interest rate on tax lien certificates, making it a worthwhile consideration for investors. With a low entry cost, this investment strategy provides an opportunity to acquire properties at a fraction of their market value.

Understanding Tax Lien Certificates

A tax lien certificate represents a lien on the property due to unpaid taxes. When homeowners fail to pay their property taxes, the county places a lien on the property and auctions these liens to investors. If the homeowner redeems the property, they must pay back the lien amount plus the 18% annual interest, offering a lucrative return for the investor.

For example, if you purchase a tax lien for $5,000 and the homeowner redeems it after one year, you would earn $900 in interest. If they redeem after two years, your interest earnings would double to $1,800. If the homeowner does not redeem the lien, you have the right to foreclose on the property after two years.

Steps to Start Tax Lien Investing in Howard County

1. Research and Understand Local Laws

Knowing the legal framework is crucial. Each county has specific regulations governing tax lien sales, so familiarize yourself with Howard County’s rules by visiting their Finance Department.

2. Visit the Local Treasurer’s Website

Howard County provides detailed tax sale information on their Tax Sale Information page. This site includes important dates, bidding instructions, and FAQs.

3. Check the Auction Site

All registrations and bidding are conducted online. You can find the auction details and register on the Howard County Tax Sale Auction Site.

4. Read the Details About Tax Liens

Make sure you understand the sale schedule, the parcel inquiry process, and other essential details. This information is available on the county’s finance website.

5. Contact the County Office

For additional inquiries, you can reach out to the Howard County Finance Department at 410-313-2389 or email taxsale@howardcountymd.gov.

Important Details

Detail	Information
Tax Sale Type	Tax Lien Sale
Typical Date of Sale	May
Redemption Period	6 months from the date of sale
Interest Rate	18% annually
Bid Procedure	Sealed bid
Deposit	$1,000 via ACH debit at registration
Auction Site	Howard County Tax Sale Auction Site
Contact Information	410-313-2389, taxsale@howardcountymd.gov

Facts About Howard County

• Population: Howard County’s population reached 334,529 as of the 2020 census, reflecting steady growth and development.
• County Seat: Ellicott City serves as the unincorporated county seat of Howard County, offering a blend of historic charm and modern amenities.
• Economic Position: Part of the Baltimore-Columbia-Towson Metropolitan Statistical Area and the larger Washington-Baltimore Combined Statistical Area, Howard County bridges two major markets.
• Planned Community: The county is home to Columbia, a nationally recognized planned community established in 1967 with approximately 100,000 residents.
• Affluence & Education: With a median household income of $124,042 (2020) and 63.6% of residents holding at least a bachelor’s degree, Howard County ranks among the wealthiest and most educated counties in the U.S.
• Quality of Life: Frequently celebrated for its high quality of life, Howard County boasts top-tier schools, with the Howard County Public School System ranked the best in Maryland in 2022.
• Best Places to Live: Communities like Columbia/Ellicott City consistently land in Money magazine’s “Top 10 Best Places to Live,” highlighting the area’s appeal for families and professionals.
• Affluent Areas: Prestigious neighborhoods such as Clarksville, Dayton, Glenelg, and Glenwood align the Route 32 corridor, showcasing Howard County’s upscale living options.

Howard County blends economic vitality, exceptional education, and a rich quality of life, making it a standout region in Maryland

Pro Tips

• Research Thoroughly: Investigate each property before bidding. Unsold liens might be available post-sale, but properties are sold “AS IS.”
• Legal Advice: Consider consulting with an attorney to understand the foreclosure process and other legal implications.
• Budget Wisely: Submit your budget accurately during registration as it determines your bidding power.

Useful Links

• Howard County Finance Department
• Howard County Tax Sale Information
• Howard County Auction Site
• Earn Solid 6-20% ROI In Maryland Tax Liens!
• Learn How Does Tax Lien Investing Work
• Want to get started with Tax Liens? Click Here!
• Start investing in Tax Liens in Maryland Tax Lien Auctions and earn a 6-20% return on investment!

Need a Hand?

If you’re looking for help with tax lien investing, we’re here to guide you every step of the way. Whether you’re a beginner or looking to refine your strategy, consider booking a call with our experts or accessing our free resources to gain valuable insights and tools for success.

Howard County’s annual tax lien sale offers a prime opportunity for investors to earn high returns. By understanding the process and doing thorough research, you can make informed decisions and potentially acquire valuable properties at a low cost​.

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