The city mails Roger his property tax bill on July 1.

Man stands outside front door at mailbox, reading letter in envelope.
Man stands outside front door at mailbox, reading letter in envelope. (Laila Milevski / The Baltimore Banner)

But what if Roger can’t pay the whole tax bill by the end of the year?

Man sitting at table covered in bills, receipts, and papers, looks concerned while listing expenses.
Man sitting at table covered in bills, receipts, and papers, looks concerned while listing expenses. (Laila Milevski / The Baltimore Banner)

In February, the city mails Roger a final bill. He owes $750 plus monthly interest charged by the city.

Older man looks at envelope in hand labeled "Final." In background, a huge check for $750, plus one month of interest, squeezes down on top of row house.
Older man looks at envelope in hand labeled "Final." In background, a huge check for $750, plus one month of interest, squeezes down on top of row house. (Laila Milevski / The Baltimore Banner)

But suppose the sewer backs up into his basement, and Roger has to pay the emergency plumber instead.

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Older man and plumber at bottom of stairs, looking at overflowing utility sink. Price tag in corner says $500.
Older man and plumber at bottom of stairs, looking at overflowing utility sink. Price tag in corner says $500. (Laila Milevski / The Baltimore Banner)

By mid-May, Roger still can’t pay, so the city auctions his tax debt to investors at the annual tax sale.

Man at auction block with gavel points at arm wearing suit jacket sticking up in foreground, holding auction number.
Man at auction block with gavel points at arm wearing suit jacket sticking up in foreground, holding auction number. (Laila Milevski / The Baltimore Banner)

Investors buy Roger’s debt, called a “tax certificate,” and begin charging 12% annual interest.

Investor in suit jacket and sunglasses holds $750 check with five months of interest, pulls down shade that says 12% annual interest.
Investor in suit jacket and sunglasses holds $750 check with five months of interest, pulls down shade that says 12% annual interest. (Laila Milevski / The Baltimore Banner)

To save his property, he has to pay the investor the $750, plus accrued interest and attorneys’ fees.

Older man looks in shock at letter, while $750 check with five months interest, plus 12% annual interest squeezes row house smaller.
Older man looks in shock at letter, while $750 check with five months interest, plus 12% annual interest squeezes row house smaller. (Laila Milevski / The Baltimore Banner)

Roger still can’t pay by July 1, and another year of property taxes are added to his bill.

Older man overwhelmed by $2000 property tax bill that piles on top of $750 check and accrued interest. Row house is completed squashed underneath bills.
Older man overwhelmed by $2000 property tax bill that piles on top of $750 check and accrued interest. Row house is completed squashed underneath bills. (Laila Milevski / The Baltimore Banner)

Nine months after they buy Roger’s debt, the investors can file a lawsuit to foreclose on his property.

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Older man surprised by investor in suit jacket who throws a net over row house. In background there are 9 pages from a monthly calendar, June through February.
Older man surprised by investor in suit jacket who throws a net over row house. In background there are 9 pages from a monthly calendar, June through February. (Laila Milevski / The Baltimore Banner)

To stop from losing his house, Roger has to pay the full amount he owes to the investors.

Older man pushes property bill, $750 check, and accrued interest off of row house.
Older man pushes property bill, $750 check, and accrued interest off of row house. (Laila Milevski / The Baltimore Banner)

If Roger can’t scrape the money together, he will lose his house and all of its equity to the investors.

Dejected older man holds suitcase, stands next to boxes with row house in net behind him.
Dejected older man holds suitcase, stands next to boxes with row house in net behind him. (Laila Milevski / The Baltimore Banner)

laila.milevski@thebaltimorebanner.com

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