WVBaker
05-12-2007, 02:50 PM
A question for anyone with greater insight than I.
If anyone here has attended a Tax Sale in any of the Maryland counties, perhaps you would be so kind to help me understand the following:
“All successful bidders must pay the amount of back taxes, interest and costs plus a High Bid Premium (if applicable) by 4:30 pm on the day of the sale. The high-bid premium is 20% of the amount by which the bid exceeds 40% of the property full cash value”.
Being new to this, I assumed that your bid amount due at the end of the sale consisted of the back taxes, interest and costs. That I understand. What I don’t understand is this, “High Bid Premium”.
They base this premium on a percentage of the “purchase price” and use the example of $100,000.00, which brings me to this. I thought you were bidding on the past due taxes and fees. A “purchase price”? What “purchase price”? Where does “purchase price” come into this?
So let’s imagine that, using the above information, your alleged “purchase price” is $40,000.00 and there is no “High Bid Premium”, when is this $40,000.00 due and to whom is due?
I thought you were trying to obtain control of a property for a few thousand dollars. Now it’s $40,000.00 plus any and all taxes and fees due?
Can anyone help with this?
If anyone here has attended a Tax Sale in any of the Maryland counties, perhaps you would be so kind to help me understand the following:
“All successful bidders must pay the amount of back taxes, interest and costs plus a High Bid Premium (if applicable) by 4:30 pm on the day of the sale. The high-bid premium is 20% of the amount by which the bid exceeds 40% of the property full cash value”.
Being new to this, I assumed that your bid amount due at the end of the sale consisted of the back taxes, interest and costs. That I understand. What I don’t understand is this, “High Bid Premium”.
They base this premium on a percentage of the “purchase price” and use the example of $100,000.00, which brings me to this. I thought you were bidding on the past due taxes and fees. A “purchase price”? What “purchase price”? Where does “purchase price” come into this?
So let’s imagine that, using the above information, your alleged “purchase price” is $40,000.00 and there is no “High Bid Premium”, when is this $40,000.00 due and to whom is due?
I thought you were trying to obtain control of a property for a few thousand dollars. Now it’s $40,000.00 plus any and all taxes and fees due?
Can anyone help with this?