Facing Tax Foreclosure in Baltimore City, Maryland? Know Your Rights
If you are a homeowner in Baltimore City, Maryland, dealing with delinquent property taxes or facing foreclosure, you are not alone and you have more rights than you may realize. This guide explains how the process works in your county, what protections exist, and steps you can take right now.
How Tax Sales Work in Baltimore City
Maryland uses a tax lien certificate sale system. The County Treasurer in Baltimore sells tax lien certificates to investors. If you do not redeem during the statutory period, the certificate holder can foreclose. Any sale proceeds beyond taxes, interest, penalties, and costs are surplus funds that may belong to you under Section 14-818.
Surplus Funds and Tyler v. Hennepin County
In 2023, the U.S. Supreme Court ruled unanimously in Tyler v. Hennepin County that governments cannot keep surplus proceeds from tax sales beyond what is owed, as this violates the Fifth Amendment. Maryland has responded with reforms, and property owners' rights to surplus are stronger than ever.
Key Deadlines
Unclaimed surplus is presumed abandoned after three years under Section 17-307 and transferred to the Maryland Comptroller. A 24-month blackout on finder's fee agreements also applies under Section 17-325.
Maryland's 24-month blackout on finder's fees means you should be cautious of anyone charging large fees for surplus recovery. You can file directly for a flat $4,999 fee upon successful recovery.
Steps to Take Now
- Contact the County Treasurer where your property was sold to ask if surplus funds are held.
- If more than three years have passed, search the Maryland Comptroller's unclaimed property database.
- Gather proof of ownership, government-issued ID, tax records, and sale correspondence.
- File with the tax collector (within three years) or the Comptroller's Unclaimed Property Division (after three years).
Free Help from AuctionBlock.org
AuctionBlock.org is a mission-driven company that helps homeowners recover surplus funds and understand their rights, completely free. We can search for surplus funds, guide you through the claims process, and connect you with legal resources.
Visit AuctionBlock.org today to find out if you are owed money.
AuctionBlock.org is a mission-driven company. This article is for educational purposes only and is not legal advice. Verify current statutes and consult a licensed Maryland attorney before acting. Updated April 2026.