Indiana Tax Lien Certificates

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In the state of Indiana tax lien certificates are sold at each of the 92 county tax sales. Approximately 50 days before the county tax sale the county will publish a listing of parcels on which tax lien certificates will be offered; once each week for three (3) consecutive weeks, with the final advertisement being not less than thirty (30) days before the tax sale.

Anyone wishing to bid must register preceding the Indiana tax lien sale. The county treasurer shall sell the tract or real property, subject to the right of redemption, to the highest bidder at public auction.

If the purchaser of an Indiana tax lien certificate fails to pay the bid, the real property will be offered again for sale. In addition, the purchaser who fails to pay the bid shall pay a penalty of twenty-five percent (25%) of the amount of the bid.

Tax lien certificates not sold at the initial Indiana county tax lien certificate tax sale my be offered at a subsequent or expedited tax lien certificate tax sale which is held 'after January 1st and before March 31st of the year immediately following the year in which the property was initially offered for sale...'

Tax lien certificates not sold at either the initial Indiana county tax lien certificate sale or the subsequent Indiana tax lien certificate tax sale are sold to the county.

According to Indiana statute 'any person may redeem the tract or real property...' The interest rate charged to redeem is contingent on how much time has elapsed since the sale of the Indiana tax lien certificate.

Interest paid on Indiana tax lien certificates will vary from 10% to 15% on the minimum bid which represents delinquent taxes, special assessments and an additional 10% on the overbid which represents the amount in excess of the minimum bid.

If the delinquent owner or any other person redeems within six (6) months from the date of the Indiana county tax sale he or she will pay one hundred ten percent (110%) of the minimum bid for which the tract or real property was offered at the time of the Indiana county tax sale.

If the delinquent owner or any other person redeems after six (6) months but not more than (1) year after the date of sale he or she will pay one hundred fifteen percent (115%) of the minimum bid for which the tract or real property was offered at the time of sale.

In addition to the amount required for the minimum bid, the total amount required for redemption includes the amount by which the purchase price exceeds the minimum bid (referred to as the overbid) on the real property plus ten percent (10%) per annum on the amount by which the purchase price exceeds the minimum bid on the property.

Finally, in addition to the amount required for the minimum bid and the overbid, the total amount required for redemption includes all taxes and special assessments upon the property paid by the purchaser AFTER the sale (referred to as the subsequent taxes) plus ten percent (10%) interest per annum on those taxes and special assessments.

If the 'tract or real property...' is not redeemed before the expiration of the one (1) year redemption period the owner of the tax lien certificate can apply for a tax deed to the property but not later than six (6) months after the one (1) year redemption period has expired. If the purchaser of the tax lien certificate fails to apply for a tax deed within six (6) months of the end of the redemption period, that person's lien against the 'tract or real property...' is terminated at the end of that period.

A purchaser of an Indiana tax lien certificate is entitled to a tax deed to the property for which the tax lien certificate was sold only if the redemption period has expired; the property has not been redeemed within the period of redemption; and not later than ninety (90) days after the date of sale of the tax lien certificate the purchaser gives notice of the sale to the owner of record at the time of the sale and any person with a substantial property interest of public record in the tract or real property.

Furthermore, the purchaser is entitled to a tax deed to the property if the one (1) year redemption period has expired and not later than nine (9) months after the date of the sale the purchaser gives notice of the sale to the owner of record at the time of the sale and any person with a substantial property interest of public record in the tract or real property.

Upon receiving a tax deed the owner of the tax deed may initiate an action in the court that entered the judgment and order for sale to quiet the title to the property.

If the court finds that the plaintiff's title is invalid and that the plaintiff is not entitled to a refund, the court shall determine the amount due the plaintiff and from whom the amount is due. The court shall order that the sum so determined be paid within a reasonable time. If the payment is not made, the court shall order that the real property be sold to pay the judgment and that the right of redemption of the defendants to the suit, and all persons claiming under them, is foreclosed. When real property is sold under this section, the sheriff shall, upon payment of the purchase money, execute and deliver to the purchaser a deed in fee simple for the real property. The purchaser may then take immediate possession of the real property, and there is no right of redemption from the sale.

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

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

Interest Rate: 10% per annum (Sec. 6-1.1-25-2 )

Penalty Rate: 10% to 15% (Sec. 6-1.1-25-2 )

Bid Procedure: Premium Bid (Sec. 6-1.1-24-5 )

Redemption Period: One (1) 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%, 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'.

Tax Sale Overbids. According to (Sec. 6-1.1-24-6.4 ) when the amount bid for the purchase of tax lien certificate is tendered the county treasurer is instructed to satisfy delinquent taxes and then distribute the tax sale tax sale overages, tax sale overbids, and tax sale excess funds as follows:

Sec 6.4 (a) When a certificate of sale is sold under this chapter, the purchaser at the sale shall immediately pay the amount of the bid to the county treasurer. The county treasurer shall apply the payment in the following manner:

(1) First, to the taxes, special assessments, penalties, and costs described in section 5(e) of this chapter.

(2) Second, to other delinquent property taxes in the manner provided in IC 6-1.1-23-5(b).

(3) Third, to a separate "tax sale surplus fund".

Sec 6.4 (b) The:

(1) owner of record of the real property at the time the tax deed is issued who is divested of ownership by the issuance of a tax deed; or

(2) purchaser of the certificate or the purchaser's assignee, upon redemption of the tract or item of real property; may file a verified claim for money that is deposited in the tax sale surplus fund. If the claim is approved by the county auditor and the county treasurer, the county auditor shall issue a warrant to the claimant for the amount due.

Sec 6.4 (c) An amount deposited in the tax sale surplus fund shall be transferred by the county auditor to the county general fund and may not be disbursed under subsection (b) if it is claimed more than three (3) years after the date of its receipt.

Sec 6.4 (d) Upon the assignment of the certificate of sale to the purchaser, the county auditor shall indicate on the certificate the amount for which the certificate of sale was sold.

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Counties / Municipalities located in Indiana

The following is a list of counties located in the state of Indiana. Tax Lien Certificates for properties located in the following counties are sold at Indiana county tax sales.

Learn more about each county's individual tax sale process by clicking on the name of the county for which you are interested from the list below:

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