The County Board of Commissioners is issued a tax sale certificate for all properties where the lien was not sold at the annual tax sale. Indiana law allows the Commissioners to have a second sale to try and sell these parcels. Also referred to as “expedited” or “B” sales, the period of redemption on these liens is shortened to 120 days (vs. 1 year) for the property owner and the buyer can receive a tax deed more quickly.
The governing state law for tax sales is found within Title 6 of the Indiana Code (IC) – Taxation: Article 1.1 – Property Taxes, 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
Most of these sales are public, but SRI Incorporated conducts online Commissioner’s certificate sales for several counties in Indiana. SRI can be reached at 317-842-5818 or http://www.sri-taxsale.com/Tax/Default.aspx.
The certificate list must be published once each week for three consecutive weeks, with the final advertisement being not less than 30 days before the sale date.
The Commissioners are allowed to sell a tax sale certificate for an amount that is less than the minimum sale price that was required at the previous tax sale, and which includes any costs directly attributable to the sale of the tax lien certificate. The amount is set by county resolution. In a “B” sale, the minimum bid will include an estimate of the May tax installment.
The purchaser will receive a Tax Sale Certificate signed by the County Auditor and County Treasurer. The property may be redeemed at any time within 120 days from the sale date.
During the period between the tax sale date and the expiration of the redemption period and prior to the issuance of a deed, the buyer may pay all taxes, assessments, penalties and costs due for the property. Immediately upon paying for any additional costs, etc., the buyer should report the payment to the County Auditor's office with the receipts to record them. These costs must be filed on a Form 137B. The buyer will not be reimbursed unless he/she follows this procedure. Any costs incurred for notification and title search will not be reimbursed for an amount exceeding that set forth by the county.
When a tax sale property is redeemed, the Auditor will notify the purchaser and ask that the Tax Sale Certificate be delivered to the Auditor's office.
Once the Tax Sale Certificate is received by the Auditor, the purchaser will receive a refund equal to 110% of the minimum sale price and 10% per annum of the amount by which the purchase price exceeds the minimum sale price. In addition to the amounts stated above, the buyer will receive a refund for all taxes and special assessments on the property paid by the buyer subsequent to the sale plus 10% per annum interest on those taxes and special assessments.
Here is a list of upcoming Commissioner’s certificate sales:
JUNE 2011
Vermillion County, Indiana
June 16-27, 2011
Tax liens – internet
http://www.sri-taxsale.com/County/VERMILLION
Tippecanoe County, Indiana
June 17-27, 2011
Tax liens – internet
http://www.sri-taxsale.com/Commissioner/OnlineCertificateSaleList.aspx?county=Tippecanoe&event=0000000094&starts=2011-06-17T10:00:00&ends=2011-06-27T08:00:00
Noble County, Indiana
June 30, 2011
Tax liens – public
http://www.sri-taxsale.com/Commissioner/LiveCertificateSaleList.aspx?county=Noble&location=Noble%20County%20Commissioners%20Room%20-%202nd%20Floor%20Courthouse&starts=2011-06-30T10:00:00
Shelby County, Indiana
June 30, 2011
Tax liens – public
http://www.sri-taxsale.com/County/SHELBY
AUGUST 2011
Madison County, Indiana
August 3, 2011
Tax liens – public
http://www.sri-taxsale.com/County/Madison
Jennings County, Indiana
August 22, 2011
Tax liens – public
http://www.sri-taxsale.com/County/Jennings
Next week I’ll talk about the process for foreclosing on a certificate that was not redeemed.
If you would like to learn more about tax lien certificate and tax deed investing, click here.
Happy Investing!
Michael Williams
816-673-1874
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