Property Tax Liens In Indiana
Property Tax Liens In Indiana are sold by the County Treasurer or the County Auditor or a combination of the two.
The local procedures vary among the 92 Indiana Counties.
The redemption period for a tax lien is one year. Liens not sold at the county sale are certified to the County Commissioner and sold later at their own Commissioner Certificate Sale. These such Commissioner Certificates have a redemption period of only four months.
Indiana uses a penalty amount instead of an interest rate on this certificate with interest being paid on any overbid amount.
The penalty varies from 10% should the lien be redeemed within six months after the tax sale.
It then goes to 15% if redeemed after six months but before the one year redemption period expires.
To protect your investment, you need to apply for a “tax deed” within six months from the end of the redemption period.
10% per annum on any premium or “over bid” amount is paid. Also, you will also receive 5% per annum for any subsequent taxes you paid on the property.
You are 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 can range from $200.00 – $500.00. The fees include the cost of the sale, notifications and petitions for a tax deed.
Not all 92 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.
Please adhere to deadlines for notices petitioning the court for a deed. Otherwise, you could lose your investment and any claim to the property.
Tax sales can be found to be invalid before the lien is redeemed or a tax deed issued. In these cases, you will not receive a deed. You will however, be refunded the purchase price plus 6% per annum interest.
Some sales are found to be invalid after the execution of a tax deed. These such deeds will be invalid and the you are then entitled to a lien on the property. These such liens pay 10% per annum on the purchase price and any subsequent taxes you paid.
A few counties conduct their sales online.
Liens that are not sold in the Commissioners certificate sale are acquired by the county. These may be sold in a deed sale.