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.
Maryland Tax Liens
Maryland has an interest rate of 6% to 24% and varies on each county. The redemption period could be 6 months up to 2 years as each of the counties have varied rules. Competitive bidding is also used in tax lien certificate auctions.
