Tax Lien Certificates

Indiana Tax Lien Certificates

In Indiana local County Treasurers sell tax liens to the bidder with the highest or greatest bid. Depending on when the owner exercises his/her right to redeem the certificate holder will receive 10% to 15% penalty on the minimum bid and 10% on the excess or overbid. The property owner has one (1) year to exercise his or her right to redeem the property. The certificate holder can apply for a tax deed once the one (1) year redemption has expired but not later than six (6) months after the one year redemption period has expired.

Tax Sale Type: Tax Lien Certificate (Sec. 6-1.1-24-9 ).

Contact: County Treasurer. (Sec. 6-1.1-24-5(e) ).

Interest Rate and/or Penalty Rate: 10% to 15% penalty. (Sec. 6-1.1-25-2 ).

Bid Procedure: The highest or greatest bid. (Sec. 6-1.1-24-5 ).

Redemption Period: One year. (Sec. 6-1.1-25-4 ).

Law: Indiana Code, Title 6, Article 1.1, Chapter 24, "Sale of Real Property When Taxes or Special Assessments Become Delinquent," and Chapter 25, "Redemption of and Tax Deeds for Real Property Sold for Delinquent Taxes and Special Assessments."

Additional Notes:

Penalty interest rate paid upon redemption The tax lien certificate holder will receive a 10% to 15% penalty, depending on when the home owner exercises his or her right to redeem. According to (Sec. 6-1.1-25-2 ) when redeemed, the home owner will have to pay as follows:

    For the minimum bid (delinquent taxes, special assessments, etc.):

• (110%) of the minimum bid if redeemed 'not more than six (6) months after the date of sale; or'
• (115%) of the minimum bid if redeemed 'more than six (6) months but not more than one (1) year after the date of the sale.'

    For the overbid (the amount over and above the minimum):

• 'plus ten percent (10%) per annum on the amount by which the purchase price exceeds the minimum bid on the property.'

Applying for a tax deed: According to (Sec. 6-1.1-25-4.6 ) the owner of the tax lien certificate must apply for the tax deed 'not later than six (6) months after the one year redemption period has expired.'

Consquently, according to (Sec. 6-1.1-25-7 (a) ) if the purchaser 'fails to file the petition within the period provided in section 4.6 of this chapter, that person's lien against the real property terminates at the end of that period.'

In addition, according to (Sec. 6-1.1-25-7 (b) ):

'If the notice under section 4.5 of this chapter is not given within the period specified in section 4.5(a)(3) or 4.5(c)(3) of this chapter, the lien of the: (1) purchaser of the property; or (2) purchaser of the certificate of sale under IC 6-1.1-24; against the real property terminates at the end of that period.'

'Notice' according to (Sec. 6-1.1-25-4.5 ) includes a notice 'not later than ninety (90) days after the date of sale of the certificate' and a second notice ' not later than nine (9) months after the date of the sale'.

Questions and Comments

Steven Waters

Posted 278 days ago

Currently you can buy Indiana Tax Lien Certificates but you cannot purchase Indiana Tax Deed at Indiana Tax Sales.

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