Indiana is primarily a tax lien state, but it also sells tax deeds. The tax sale is the responsibility of the county treasurer or county auditor, depending on the county. The exact procedures by which a county conducts a tax sale may differ from county to county. The redemption period for a tax lien purchased in the county tax sale is one year. Liens that are not sold at the county tax sale are certified to the county commissioner and sold later in the commissioners certificate sale. These liens have a redemption period of 120 days (four months).
Indiana has a penalty, not an interest rate on the certificate amount, but interest is paid on the overbid amount. The penalty varies from 10%, if the lien is redeemed in the first six months after the sale, to 15% if the lien is redeemed after six months but before the one-year redemption period is over. After one year, the owner cannot redeem. The lien purchaser must apply for a tax deed within six months of the end of the redemption period or lose their investment.
The premium bid method is utilized, and if the lien is redeemed, you do receive interest (10% per annum) on the premium amount (referred to as the “tax sale overbid”). You also receive 10% per annum interest on any subsequent taxes paid. The purchaser will be issued a receipt that is to be used when picking up the tax sale certificate.
The minimum bid is equal to all taxes, penalties, and special assessments presently due on the parcel plus an added fee for administrative costs. Fees cited on the county websites that published this information ranged from $200.00 – $440.00. These fees may include not only the cost of the sale, but notification and petition to the court for a tax deed. Not all counties take care of this however, and if you purchase a tax lien certificate in a county that does not, pay strict attention to requirements for doing so. If you don’t adhere to deadlines for notices petitioning the court for a deed, you could lose your investment and any claim to the property.
If for any reason the tax sale is found to be invalid before the lien is redeemed or a tax deed issued, the purchaser will not receive a deed but shall be refunded the purchase price plus 6% per annum interest. If the sale is found to be invalid after the execution of a tax deed, the deed will be invalid and the buyer is entitled to a lien on the property in the amount of the purchase price and subsequent taxes paid plus interest at 10% per annum.
TSR has scheduled all of the Indiana tax sales for this fall! Some of the counties include Lake, Benton, Putnam, Cass, Clark, Gibson, and many more! Click here to view the calendar of all upcoming sales http://www.taxsaleresources.com/StateCalendar.aspx?state_id=17. Feel free to contact us if you have any questions or would like to order a specific Indiana list at firstname.lastname@example.org.