Tax Sale Video Transcript:

Everyone who owns real estate in Indiana is required to pay taxes to their county treasurer each year. Usually, tax payments are due in May and in November. When tax payments become delinquent, the county will eventually hold an auction where people buy tax sale certificates.

A tax sale certificate amounts to a lien against a piece of property. It entitles the owner of the tax sale certificate to receive the amount that he paid for the certificate plus certain expenses - like attorney fees - plus interest. Or, if the owner of the property does not redeem the property - that is, pay for the tax sale certificate, attorney fees, and interest, then after a specified time (for tax sale certificates it is usually one year), the redemption period ends.

At that time the person who owns the tax sale certificate can petition for a tax deed to the real estate and become the new owner of the real estate. But, in order for that to happen, when you first buy the tax sale certificate there are things that must be done. Specifically, you need to get a title search so that you can identify the owner or owners, any mortgage holders, and any lien holders of any kind. All of those parties must be served with a legal notice of the sale and of their rights to redeem the property. Later the same parties must be notified again when you petition for a tax deed. If all these requirements are not strictly complied with, then you will not be entitled to the tax deed and you could lose your investment.

I have seen some people do very well by investing in tax sale properties; sometimes they are able to buy properties for a small percentage of their actual values. However, you must be very careful when looking to buy tax properties because, of course, you buy them “as is” and most of them will need extensive repairs.

Our office helps people with tax sale matters throughout the entire State of Indiana.