Tax Foreclosure in Montana: What Homeowners Need to Know
A guide from AuctionBlock.org — a mission-driven company dedicated to foreclosure prevention education
Montana uses a tax lien system. Counties sell tax lien certificates (called "assignments") on delinquent properties, and the assignee can eventually obtain a tax deed.
How It Works
Property taxes in Montana are collected by the county treasurer. Under MCA § 15-17-101 et seq., when taxes are delinquent, the county treasurer issues a delinquency notice. After taxes remain unpaid, the county holds a tax lien sale where assignments of the delinquent tax lien are sold.
The assignment holder pays the delinquent taxes and earns interest. If the owner does not pay, the assignment holder can apply for a tax deed after the redemption period.
Redemption Period
Under MCA § 15-18-111, the property owner has a right of redemption. The assignment holder cannot apply for a tax deed until 36 months (3 years) after the initial delinquency. During this time, the owner can redeem by paying all delinquent taxes, interest, penalties, and costs to the county treasurer.
Before a tax deed is issued, the assignment holder must provide written notice to the property owner, giving at least 2 months to redeem.
Key Programs and Exemptions
Montana Property Tax Assistance Program (PTAP): Under MCA § 15-6-305, qualifying homeowners with income below the statutory threshold may receive a reduced tax rate on their primary residence. Apply through the Montana Department of Revenue.
Disabled Veterans Exemption: Under MCA § 15-6-211, veterans with a 100% service-connected disability may be exempt from property taxes on their primary residence up to a set assessed value. Apply through the Montana Department of Revenue.
Elderly Homeowner/Renter Credit: Montana offers a refundable income tax credit for certain elderly or disabled homeowners and renters. Check with the Montana Department of Revenue for eligibility.
Where to Get Help
- Montana Legal Services Association: Provides free legal help to low-income Montanans. Call (406) 442-9830 or 1-800-666-6899, or visit mtlsa.org.
- HUD-Approved Housing Counselors: Call 1-800-569-4287 or visit hud.gov/counseling.
Take Action
Montana's 3-year redemption timeline gives homeowners time, but interest and costs grow. Contact your county treasurer immediately if you are behind.
Visit auctionblock.org/get-help for free resources and referrals.
Disclaimer: This guide is for educational purposes only and does not constitute legal advice. Laws and programs change. Verify current rules with your county treasurer or a licensed attorney. AuctionBlock.org is a mission-driven company.