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What happens if your South Carolina home is auctioned to pay back taxes? You have some time to redeem your house and recover it.

If you do not pay your property taxes on time, the amount owed becomes a lien on your house. Once a tax lien is placed on your property in South Carolina, the taxing authority may organize a tax sale, which is a public auction.

The collector sells the residence at auction to the person or organization who submits the highest bid over the amount required to pay all outstanding taxes, assessments, fines, and expenses. 12-51-50 of the South Carolina Code Ann.) However, the buyer does not immediately take possession of your house.

Instead, the purchaser receives a receipt after the transaction, subject to your one-year redemption right. 12-51-60 of the South Carolina Code Ann.)

Is South Carolina a State of Tax Liens or Tax Deeds?

To recover overdue taxes, each state has its own tax auction mechanism.

Taxation States

If the homeowner does not pay up the obligation, the taxation authorities may sell the property. The property is transferred to the purchaser during the transaction.

However, the purchaser may not get the deed to the property immediately away. Before the buyer obtains the deed, a redemption period may have to expire.
States with Tax Liens

The taxation body sells the tax lien in other regions. The purchaser receives a tax lien certificate. The buyer may then attempt to recover the delinquent taxpayer’s past-due taxes plus interest.

If the unpaid taxes are not paid by a certain date, the lien buyer may generally get possession of the property by foreclosing the lien or following certain processes to convert the certificate to a deed.

In South Carolina, the buyer in a property tax sale does not immediately get title to the property. Instead, the buyer receives a receipt (essentially, a tax lien certificate), which is subject to the homeowner’s right of redemption. 12-51-60 of the South Carolina Code Ann.)

Additional Tax Sale Procedures

In certain cases, a tax foreclosure procedure is followed, or the taxing body just enforces its claim by acquiring ownership of the residence. State law then normally provides a method for the taxing body to dispose of the property, typically by sale.

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How Do South Carolina Property Tax Sales Work?

In South Carolina, the property is auctioned off by the tax collector or county treasurer. The successful bidder at the auction will be the person or company that puts the highest price over the amount required to pay all outstanding taxes, assessments, fines, and expenses. 12-51-50 of the South Carolina Code Ann.)

After the transaction, the successful bidder receives a receipt. The receipt proves the successful bidder’s ownership of the property throughout the redemption period.

How Can I Prevent My Property From Being Sold in a South Carolina Property Tax Sale?

To prevent a South Carolina property tax auction, you must pay all unpaid taxes, assessments, fines, and expenses. Before the sale, the county must receive and handle this sum.

Your mortgage lender may pay the back taxes.

If you do not pay your South Carolina property taxes and have a mortgage on your house, your lender may pay the overdue taxes. The lender bears this cost because if a house is sold at tax sale, the mortgage will most likely be wiped off.

However, even if the lender pays the taxes to avoid a tax sale, you are still liable for them. The lender will include the taxes in the amount you owe. If you are unable to repay the mortgage, the lender may foreclose on your house.

How to Reclaim Your South Carolina Home After a Tax Sale

In South Carolina, you have 12 months from the date of the tax sale to redeem the property. (See S.C. Code Ann. 12-51-90 and S.C. Code Ann. 12-51-130.)

Notice Regarding the Expiration of the Redemption Period

The tax collector must send you a notification by certified mail, return receipt requested, no more than 45 days before the end of the redemption period. This message informs you that the end of your redemption term is rapidly approaching. 12-51-120 (S.C. Code Ann.)

How Much Does it Cost to Redeem a Property After a Tax Sale in South Carolina?

To redeem your house, you must pay the outstanding taxes, fines, charges, assessments, and interest owing to the bidder up to 12% to the tax collector. 12-51-90 of the South Carolina Code Ann.)

The amount of interest you must pay is determined by when you redeem the house.

You must pay 3% if you redeem during the first three months of the redemption term.
You must pay 6% if you redeem during months four, five, or six of the redemption term.
If you redeem in months seven, eight, or nine, you must incur a 9% penalty.
You must pay 12% if you redeem within the last three months of your redemption term. 12-51-90 of the South Carolina Code Ann.)

However, the amount of interest owed cannot exceed the amount of the Forfeited Land Commission’s initial offer at the auction. As a result, the interest cannot exceed the sum of all outstanding taxes, fines, assessments, and expenses, plus the current year’s taxes due. 12-51-90, 12-51-55, S.C. Code Ann.

Rent Must Be Paid If You Want to Redeem a Mobile or Manufactured Home

If your mobile or prefabricated home is sold in a tax sale, you must pay rent to the successful bidder in order to retrieve it. 12-51-96 of the South Carolina Code Ann.)

What Is the Procedure for Redeeming Property Following a Tax Sale in South Carolina?

To redeem your house following a South Carolina property tax auction, contact the county tax collector’s office. Inquire about the precise amount you must pay to prevent the tax sale purchaser from obtaining title to your house.

The collector receives the redemption amount. When you redeem the property, the bidder who bought it at the tax sale is informed and receives a reimbursement.

Property that is not redeemed is given to the victorious purchaser through a tax sale deed. Following the end of the redemption period, the conveyance usually occurs within 30 days, or as soon as practicable after that.

Another Way to Reclaim Property Following a Tax Sale in South Carolina

If you are unable to redeem the property, you may be able to put aside (invalidate) a tax sale by demonstrating, for example:

There were mistakes in the tax lien or tax sale procedure, or you paid the taxes, or they were not owing, or you had a justifiable cause for failing to pay the past-due sums.

However, if you do not redeem within 12 months and another 12 months pass, the top bidder receives a tax deed that is unassailable on procedural or other grounds. (See S.C. Code Ann. 12-51-90 and S.C. Code Ann. 12-51-130.) (In very unusual cases, you may be able to protest the sale after the time limit has passed.)

So, if you wish to attempt to stop the sale, have an attorney evaluate the tax collector’s whole file as quickly as possible to see whether the collector properly followed every legal requirement. Any incident of the tax collector failing to comply with South Carolina’s tax sale laws might result in a tax sale being overturned.

How to Reduce Your South Carolina Property Taxes Before a Tax Sale

Even though you will have a redemption time after a South Carolina tax lien sale, it is usually advisable to take action before your taxes become late in order to make them more inexpensive.

You may, for example, see whether you qualify for a property tax exemption, such as a homestead exemption. You may also be able to apply to the taxation authorities for a payment plan, which would enable you to pay what you owe in payments over time.

Furthermore, several states and local governments offer specific programs to assist financially challenged or elderly homeowners who are unable to keep up with their property taxes. These organizations may provide a low-interest loan or grant to help with tax payments.

How to Get Property Back After a Tax Sale in South Carolina

The delinquent taxpayer maintains title and control of the property throughout the redemption period. So, if you acquire a property in a South Carolina tax sale, you cannot take possession of it. The purchaser has no ownership rights in the property and has no authority to access or contact the owner.

Until the redemption time passes and a deed is granted, the winning bidder from the tax auction is not permitted to access, maintain, change, or otherwise interfere with the property. This implies that the buyer cannot do anything with the property until he or she receives a tax deed.

If the delinquent taxpayer fails to redeem the property within the redemption period, the property is deeded to the victorious bidder through a tax sale transfer. After the property is not redeemed and a tax deed is registered, ownership rights pass. If the taxpayer redeems, the bidder receives a refund.

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