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Tax Sale Redemption in Pennsylvania

The Law Office of David M. Offen explains how a tax sale redemption works in Pennsylvania for reclaiming your home.

About the Pennsylvania tax sale redemption period

In Philadelphia and in the rest of Pennsylvania, if your property has been sold at a tax sale for failure to pay real estate taxes, there is the possibility of recovering the property and getting it back in to your name — this is called a Philadelphia Tax Sale Home Redemption, and is applied to all PA Tax Sales.

Under Pennsylvania real estate tax sale law, several conditions need to be met for a PA Tax Sale Home Redemption:

  1. You need to reside in the property or have your family reside in the property.
  2. You need to pay off the full amount of the purchase price at the tax sale plus 10% and other costs and expenses.
  3. You have nine months from the date of the Real Estate Tax Sale in Philadelphia to redeem the property. This is called a Philadelphia Tax Sale Redemption.

Chapter 13 bankruptcy and right of redemption under Pennsylvania real estate tax sale law

In addition, if you file a Chapter 13 bankruptcy case for a property sold in Philadelphia, three of the Honorable United States Bankruptcy Judges have all found that a person may use the right of redemption, which is allowed under Pennsylvania law to be used in a Chapter 13 bankruptcy case:

The effect of the Court’s ruling is that instead of a person or family being limited to paying off a large tax debt within a period of nine months, the Bankruptcy Judges have now ruled that you are allowed a period of up to 5 years (60 months), which is the maximum allowed in a Chapter 13 bankruptcy, in which to pay off the defaulted debt owed on the real estate taxes.

The excellent decisions are in line with the purpose of Pennsylvania law, which is to allow the homeowner the opportunity to regain ownership of the property. In addition to getting up to 5 years to repay the real estate tax debt, any other debts owed by the individual or couple can also be included in the Chapter 13 bankruptcy filing.

This does not apply to a property sold at a mortgage foreclosure sale in Philadelphia. The law is that when the hammer falls at the sheriff sale for a mortgage foreclosure, the person loses the ability to cure the default.

Hire an Experienced Philadelphia Bankruptcy Attorney

To learn more about how the bankruptcy laws can work in your favor, including the tax sale home redemption, call The Law Offices of David M. Offen. With over 20 years of experience helping people get a fresh financial start, our bankruptcy attorneys can review your situation and give sound advice that may just change your life. Call us today for a FREE consultation at (215) 625-9600.

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