If you are in Maryland, the bidding system for tax lien auctions is different from the other states. In Maryland, the counties have premium bidding. However, there is no need to pay for the whole premium at the tax sale. You only pay for the amount of the tax lien certificate as well as a portion of the premium, which is called high bid premium.
High bid premium is forty percent of the property value, and a difference of twenty percent between the bid amount. So, if you are going to bid for a tax lien property with a value that is less than forty percent, then you do not need to pay for any of the premium. But, if you foreclose on the tax lien property, then that is the time to pay all premiums.
