Getting Your Mississippi Home Back After a Property Tax Sale

After a tax sale in Mississippi, most consumers have a two-year redemption period.

If you do not pay your property taxes on time, the amount owed becomes a lien on your house. This form of lien nearly often takes precedence over other types of liens, including mortgages. When taxes are not paid, the taxing authority will either sell the lien (and if you do not pay the past-due sum to the lien purchaser, that party may foreclose or use another way to get title to the house) or sell the property itself in a tax sale. In certain areas, however, no auction is made; instead, the taxation body enforces its lien by acquiring ownership to the residence. The taxation body is then required by state law to dispose of the property, typically by selling it. Before conducting a sale, the taxation authority in some countries utilizes a foreclosure procedure.

In Mississippi, any unpaid property taxes constitute a lien on your house. If you fail to pay the sum owed, the sheriff will most likely organize a tax sale and sell your house to a new owner. The successful bidder purchases the property and receives a tax certificate at the auction. If you do not redeem the property by paying off the tax bill, the auction buyer may ultimately get a tax deed (title) to your house.

In general, persons who lose their house due to a tax sale in Mississippi have two alternatives for reclaiming it: redeeming it or setting aside (reversing) the sale. As a result, you generally have the option of paying up the outstanding payments, plus interest, and “redeeming” the property within a certain time frame (see below). If you don’t pay, you’ll lose your opportunity to retain your Mississippi house unless you can invalidate the completed tax sale, which is rare.

Generally, the right to redeem after a tax sale

In most jurisdictions, delinquent taxpayers have a certain length of time following a tax sale to redeem their house by paying the buyer the sum paid at the auction or paying the taxes due, plus interest, penalties, and expenses. In certain places, the redemption period takes place prior to the sale. However, if you do not redeem, the purchaser will be able to get title to the house free and clear of any liens that existed prior to the sale.

During the redemption period, the homeowner usually has the right to dwell in the house. from year to year. However, in certain places, the time limit is substantially shorter.

How Long Is the Redemption Period After a Mississippi Tax Sale?

According to Mississippi law, most persons have a two-year redemption period after the transaction. During this period, you may pay off the tax bill and keep the buyer from taking possession of your house. Mississippi Code Ann. 27-45-3, 21-33-61). If you haven’t paid off the delinquent payments by the conclusion of the redemption term, the purchaser might get a tax title to your house.

Minors and people of unsound mind who lose their homes due to the tax sale have two years after reaching full age or being restored to sanity to redeem. Mississippi Code Ann. 27-45-3, 21-33-61).

How Much Will You Have to Pay to Restore Your Mississippi Home?

To redeem your house after the sale, you must pay the chancery clerk the following redemption sum, regardless of the amount of the purchaser’s offer during the tax sale:

the amount of taxes owed plus 5% selling costs, plus interest at the rate of 1.5% per month (or any fraction thereof) from the sale date, and any expenditures incurred on the property since the sale, plus interest at the rate of 1.5% per month (or any fraction thereof) from the date the costs incurred. Mississippi Code Ann. 27-45-3.

Minors and individuals of unsound mind who reach full age or are restored to sanity and want to redeem must additionally pay the value of any permanent modifications made to the property by the purchaser after the two-year period has expired. Mississippi Code Ann. 27-45-3, 21-33-61).

Putting a Completed Tax Sale Aside

In certain rare cases, such as if the tax lien or tax sale procedure was flawed, the taxes were paid or not owing, or there was excusable negligence, you may be able to invalidate a completed tax sale. The grounds for invalidating a tax sale, as well as the processes for doing so, are extensive. If you lose your property in a tax sale and want to learn more about putting the sale on hold, contact an experienced lawyer as soon as possible.

How to Reduce Your Property Taxes

Even though you will have a redemption time after a Mississippi tax sale, it is usually advisable to take action before your taxes become late in order to make them more inexpensive. For example, you could:

Find out whether you qualify for a property tax abatement, or seek a revision in the property’s assessment if you believe the assessed value does not represent the fair market value.