Tax Delinquency in Montgomery County: A Homeowner’s Guide to the 2026 Tax Sale

If you have received a “Notice of Tax Sale” from the Montgomery County Department of Finance, it is a stressful moment. You might be worried about losing your home, but it is critical to understand that the process takes time, and you have clear legal rights to stop it.

This guide is designed to help Montgomery County homeowners understand the June 2026 Tax Sale, the specific redemption costs, and how to protect your equity before it’s too late.

The Montgomery County Tax Sale: How It Works

Unlike some neighboring counties that hold their auctions in May, Montgomery County typically holds its annual tax sale on the second Monday in June.

The 2026 Auction Date: June 8, 2026 (Note: Dates are subject to final confirmation by the County Council, but this is the standard statutory date).

On this day, the county does not sell your house. Instead, they sell a Tax Lien Certificate to an investor. The investor pays your debt, and in exchange, they gain the right to charge you interest and eventually foreclose if you don’t pay them back.

Important Contact Information & Links

To manage your tax situation effectively, use these official county resources:

The Timeline: What to Expect in 2026

1. The Notices (April 2026) If you have unpaid taxes from the 2025 levy year, the county will mail you a final notice in April. They are also required to advertise your property in a local newspaper (usually The Washington Post or Montgomery Sentinel) for four consecutive weeks before the sale.

2. The Auction (June 8, 2026) If you do not pay the total amount due by the deadline, the lien is sold.

3. The Redemption Period Once the lien is sold, you enter the “Redemption Period.” You still own your home, but the clock is ticking. You must pay the investor back to clear the title.

  • Owner-Occupied Homes: The investor must wait 9 months from the sale date (until March 2027) before they can file for foreclosure.
  • Non-Owner Occupied / Vacant: The investor can file for foreclosure after just 6 months (December 2026).

The High Cost of Waiting: 20% Interest

Montgomery County has one of the strictest penalty structures in the state. Once your lien is sold, the cost to save your home increases daily.

  • The “Redemption Rate”: You will be charged 20% annually (consisting of 8% interest + 12% penalty) on the unpaid balance.
  • Legal Fees: If you wait until after the 4-month mark to redeem, you may also be required to reimburse the investor for their legal expenses and title search fees, which can add $1,000+ to your bill.

Your Options: Keep It or Sell It?

Option 1: Redeem the Property (Keep It) To keep your home, you must pay the “Redemption Amount” in full.

  • How to Pay: You cannot pay the investor directly. You must obtain a current payoff quote from the Treasury Division in Rockville and pay the county. The county then reimburses the investor.

Option 2: Sell the House (Save Your Equity) If the back taxes are too high to manage, or if the house has maintenance issues you can’t afford to fix, selling is often the best way to avoid total loss.

We Can Buy Your House Before the Foreclosure. Even if a tax lien has been sold, you can still sell the house.

  • We Pay the Lien: At closing, we deduct the taxes and interest owed to the county/investor from the sale price.
  • You Keep the Rest: The remaining equity goes directly to you.
  • No Repairs Needed: We buy properties in Silver Spring, Rockville, Gaithersburg, and Germantown in any condition.

How Consistent Homebuyers Helps Montgomery County Homeowners

We are local to the area and understand the unique “high bid premium” rules in Montgomery County.

  • We Move Fast: If you are nearing the 9-month foreclosure deadline (March 2027), we can expedite the title work to close in as little as 7 days.
  • We Handle the Paperwork: Dealing with the Rockville Treasury office can be confusing. We handle the communication to ensure the lien is officially released at closing.

Don’t let a temporary financial struggle cost you your entire investment.

Frequently Asked Questions

Can I still live in my house after the tax sale? Yes. The tax sale is simply a transfer of debt. You have the right to remain in your home throughout the entire redemption period. You are only at risk of eviction if the Circuit Court grants a final judgment of foreclosure, which takes roughly a year or more.

What happens if I don’t pay by the June deadline? If you miss the June 8th auction date, a lien is placed on your property. You will immediately owe the 20% annual interest rate on the debt. However, you can still “redeem” (pay off) the taxes anytime before the foreclosure is finalized.

Do you buy houses with other liens, like water bills or code violations? Yes. In Montgomery County, unpaid water bills or “clean and lien” charges from code enforcement can also trigger a tax sale. We buy houses with all types of liens and title issues.

Need a Hand with the Logistics?

Navigating the Montgomery County Department of Finance website can be confusing, especially when trying to calculate the exact interest and penalties that accrue daily.

If you are struggling to get a clear answer on your payoff amount, or if you simply want to know how much cash you could walk away with if you sold the property today, we are here to support you.

We have a network of title professionals who specialize in Maryland tax sales. We can help you verify the debt, communicate with the county on your behalf, and provide a clear, net-sheet breakdown of your options—free of charge.

Disclaimer: Consistent Homebuyers is a real estate investment firm, not a law firm or financial institution. We do not provide legal or tax advice. We recommend all clients consult with their own legal counsel or tax professional regarding their specific situation.

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Get A Fair Cash Offer Today If you are facing tax delinquency in Montgomery County, time is your most valuable asset. Fill out the form below or call us at (703) 687-0741. We can help you calculate your potential equity and give you a clear path forward.

More Resources for Montgomery County Homeowners