Bidding On Tax Leins
When bidding on tax leins using a .45 bid factor, does that mean the bid must be .45 times the assessed value? In order to be successful on the bid must the bid be greater than .45? This will be my first time bidding on tax leins. Please Help. Thank you. 
GTG
Quote:
GTG
On 2004-06-13 23:32, GTG wrote:
When bidding on tax leins using a .45 bid factor, does that mean the bid must be .45 times the assessed value? In order to be successful on the bid must the bid be greater than .45? This will be my first time bidding on tax leins. Please Help. Thank you.
Hi Great Tax Guru (GTG),
In Maryland, you, the bidder, decide what the bid factor will be. You can bid 0.45 or any other bid factor. The highest bid factor will be the winning bid.
If you bid a bid factor of 0.45 and win the bid, that means that, if and when the judge forecloses the rights of redemptions, you will have to pay the county treasurer 0.45 times the assessed value, plus any taxes dues, to get the deed.
At the auction itself, you will pay only the taxes due, and, in most counties, a bid premium equal to (bidFactor -0.4) / 5. The bid premiums earns 0% interest rate.
Let me know if you have more questions.
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