Redemption Period for Tax Liens

tax lien states

All tax lien states except Kentucky have a declared redemption period in the statutes. This redemption period is the time provided to the landowner, or, in some cases, any “interested party” to redeem the property by paying the tax lien, which will include the owed taxes, penalties, costs, and interests.

The redemption period for tax liens variegate in duration by legal power but the shortest would be six months, which is Maryland, and the longest is four years which is for Wyoming.

Usually, the delinquent property owner will redeem the lien before the redemption period expires. Also, the tax lien buyer may have nothing that he needs to do in cases where the lien is redeemed. However, investors may need to give back the tax lien certificate to the taxing jurisdiction and carry out a quit claim deed.

Different states have different prerequisites which you must know and follow. Some jurisdictions will advise you when a lien redeems while others may not because it all depends on the legal requirements or the taxing jurisdiction’s policies. It is your full obligation as a lien buyer to know what is happening.

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