Which statement about foreclosure after a tax lien is true?

• A. Purchasers of a third-party lien can foreclose after 2 years
• B. The municipality can foreclose after 3 months
• C. Foreclosure is automatic after 1 month
• D. Foreclosure can never occur after sale

Answer: (A)

After a tax lien is sold to a third party, there’s a defined redemption window during which the property owner can still pay what is owed. If that period passes without redemption, the lien holder may move forward with foreclosure to recover the unpaid taxes. The statement that a purchaser of a third-party lien can foreclose after two years reflects a common rule in many jurisdictions: two years is the typical timeframe after which foreclosure becomes available if taxes remain unpaid. The other options don’t fit because foreclosure isn’t automatic after a short period, and municipalities don’t typically have a fixed, very short foreclosure window like three months. Foreclosure can occur after a sale if the owner did not redeem within the allowed period, so saying it can never happen after sale is incorrect.