Housing Tip of the Week - Avoiding Tax Sale
Tax Sale is the predatory practice of selling unpaid taxes and liens to a third party who will collect the debt with high interest and additional fees. Several residents got Final Bill and Legal Notices last week, or are getting them this week. There are sometimes errors, and sometimes residents need assistance.
This week's Housing Tip of the Week outlines the ways you can get assistance if you received a Final Bill and Legal Notice. While Mayor Scott has pulled homeowners out of tax sale in the past, we do not know if this will occur moving forward, so it is important to reach out to get assistance as soon as possible.
Please contact our office if you received a Final Bill and Legal Notice if you need assistance.
Here are some additional resources for residents:
Tax Sale Deferral Program https://dhcd.baltimorecity.gov/hho/tax-sale-preve%C3%B1tio%C3%B1 where the homeowner can apply to be removed from the sale. Keep in mind that their liens are still owed on the property and DHCD staff will work with the homeowner with resources, etc.
Pro Bono Resource Center provides tax sale workshops and one-on-one assistance. https://probonomd.org/for-legal-help/help-for-homeowners/ Several Homeowner clinics are coming up in the next few weeks
Promise Pay – The Department of Public Works now has payment plans for water bills. While residents cannot be taken to tax sale because of nonpayment of the water bill, they can be taken into tax sale if the bill is included with non-payment of taxes and/or citations. Promise Pay can be accessed here. https://baltimore.promise-pay.com/ Our friends at the Dept of Finance can assist with what part of the outstanding balance is water bill and what is other liens.
SOS Fund provides one-on-one assistance and some financial assistance as well. https://www.thesosfund.com/
Homeowner’s Property Tax Credit. This credit allows for the state to pay the property taxes for qualifying homeowners (their name must be on the deed). The application is due in October (so it will not help for this year’s tax sale) but it will lower the tax liability in the future. Residents who are 70 and up can get a retroactive credit for three years. This is income based, and there are restrictions. https://dat.maryland.gov/realproperty/Pages/Homeowners'-Property-Tax-Credit-Program.aspx
Unfortunately, the Homeowner Assistance Fund that many of our constituents were able to access last year has run out of funding. This was a state program funded by ARPA funds.