Indiana Tax Lien Sales

Just a heads up that there are several Indiana tax lien sales and Commissioners sales (also known as "B" sales) coming up in the next few months. A listing is provided below.

In Indiana, tax liens purchased at the regular sale have a 1-year redemption period. The liens pay out a flat fee of 10 percent for the first 6 months, or 15 percent for the second 6 months. On an annual basis, your return could be an amazing 120 percent. Interest on the overbid, and on any taxes or assessments paid by the investor after the sale, is 10 percent per annum.

Unsold properties from the tax sale are certified to the County Executive (Board of Commissioners), and the County Auditor issues a tax lien certificate to the County Executive. These properties may be sold at what are referred to as “B” sales or Commissioners sales. The redemption period for these properties is only 120 days, and the interest payout is the same as for regular sales.

** The Platinum Rogue Investor Collection has all the information you need to get started with tax sale investing. During our Dog Days of Summer Sale (through midnight on Monday, July 18, 2011), you can purchase the Platinum Collection for the price of the Gold - only $247. A $50 savings! Click here for more information or call 816-673-1874. **

Happy investing,

Michael Williams

AUGUST 2011

Jennings County, Indiana

August 22, 2011
Tax liens – public (Commissioners certificate sale)
http://www.sri-taxsale.com/Commissioner/LiveCertificateSaleList.aspx?county=Jennings&location=Commissioners%20Meeting%20Room&starts=2011-08-22T10:00:00
 

Lawrence County, Indiana

August 31, 2011
Tax liens – public
http://www.sri-taxsale.com/County/Lawrence

Madison County, Indiana

August 3, 2011
Tax liens – public (Commissioners certificate sale)
http://www.sri-taxsale.com/Commissioner/LiveCertificateSaleList.aspx?county=Madison&location=City%20of%20Anderson%20Auditorium&starts=2011-08-03T10:00:00

Owen County, Indiana

August 24, 2011
Tax liens – public
http://www.sri-taxsale.com/County/Owen

SEPTEMBER 2011

Bartholomew County, Indiana

September 14, 2011
Tax liens – public
http://www.sri-taxsale.com/County/Bartholomew

 

Blackford County, Indiana

September 21, 2011
Tax liens – public
http://www.sri-taxsale.com/County/Blackford

Carroll County, Indiana

September 16, 2011
Tax liens – public
http://www.sri-taxsale.com/County/Carroll

Clay County, Indiana

September 26, 2011
Tax liens – public
http://www.sri-taxsale.com/County/Clay
 

Dearborn County, Indiana

September 20, 2011
Tax liens – public
http://www.sri-taxsale.com/County/Dearborn

Decatur County, Indiana

September 8, 2011
Tax liens – public
http://www.sri-taxsale.com/County/Decatur
 

Gibson County, Indiana

September 14, 2011
Tax liens – public
http://www.sri-taxsale.com/County/Gibson

Hancock County, Indiana

September 22, 2011
Tax liens – public
http://www.sri-taxsale.com/County/Hancock

Huntington County, Indiana
September 29, 2011
Tax liens – public
http://www.sri-taxsale.com/County/Huntington

Jefferson County, Indiana
September 22, 2011
Tax liens – public
http://www.sri-taxsale.com/County/Jefferson

Kosciusko County, Indiana

September 22, 2011
Tax liens – public
http://www.sri-taxsale.com/County/Kosciusko

Lake County, Indiana

September 20, 2011
Tax liens – public
http://www.sri-taxsale.com/County/Lake

Marion County, Indiana

September 22, 2011
Tax liens - public
http://www.governmentauctions.org/aNoFeeAuctionShow.asp?AucId=777&src=src1&DateID=58362

Martin County, Indiana

September 16, 2011
Tax liens – public
http://www.sri-taxsale.com/County/Martin

Montgomery County, Indiana
September 30, 2011
Tax liens – public
http://www.sri-taxsale.com/County/Montgomery

Ohio County, Indiana
September 13, 2011
Tax liens – public
http://www.sri-taxsale.com/County/Ohio

Parke County, Indiana
September 22, 2011
Tax liens – public
http://www.sri-taxsale.com/County/Parke

Perry County, Indiana
September 8, 2011
Tax liens – public
http://www.sri-taxsale.com/County/Perry

Pike County, Indiana
September 15, 2011
Tax liens – public
http://www.sri-taxsale.com/County/Pike

Posey County, Indiana

September 12, 2011
Tax liens – public
http://www.sri-taxsale.com/County/Posey

Putnam County, Indiana

September 14, 2011
Tax liens – public
http://www.sri-taxsale.com/County/Putnam

Spencer County, Indiana

September 7, 2011
Tax liens – public
http://www.sri-taxsale.com/County/Spencer

St. Joseph County, Indiana

September 14, 2011
Tax liens – public
http://www.sri-taxsale.com/County/St.%20Joseph

Sullivan County, Indiana

September 22, 2011
Tax liens – public
http://www.sri-taxsale.com/County/Sullivan

Switzerland County, Indiana

September 13, 2011
Tax liens – public
http://www.sri-taxsale.com/County/Switzerland 

Tippecanoe County, Indiana

September 29, 2011
Tax liens – public
http://www.sri-taxsale.com/County/Tippecanoe

Vermillion County, Indiana
September 21, 2011
Tax liens – public
http://www.sri-taxsale.com/County/Vermillion

Vigo County, Indiana

September 15, 2011
Tax liens – public
http://www.sri-taxsale.com/County/Vigo

Warrick County, Indiana

September 16, 2011
Tax liens – public
http://www.sri-taxsale.com/County/Warrick

Washington County, Indiana

September 19, 2011
Tax liens – public
http://www.sri-taxsale.com/County/Washington

White County, Indiana

September 7, 2011
Tax liens – public
http://www.sri-taxsale.com/County/White

New Jersey Tax Lien Certificate Sales

There are two tax lien sales that I know of coming up in August in New Jersey. The Tax Collectors and Treasurers Association of New Jersey (TCTANJ) keeps a calendar of upcoming sales on their website at http://www.tctanj.org/taxsale.html, so make this your first stop if you are interested in sales in this state.

Borough of Hillsdale, Bergen County, New Jersey
August 31, 2011
Tax liens – public
Time: 10:00 a.m.
Location: Council chambers, 380 Hillsdale Avenue
Tax sale list: request by emailing CandaceSchaefer@hillsdalenj.org
Registration: at the door

Borough of Hillsdale: http://www.hillsdalenj.org

Tax Collector: http://www.hillsdalenj.org/department_detail.cfm?dept_id=2&#resources
Candace Schaefer, Tax Collector
380 Hillsdale Avenue, Hillsdale, NJ 07642
Phone: 201-666-4800 ext 1501
Email: CandaceSchaefer@hillsdalenj.org

Township of Hopewell, Mercer County, New Jersey
August 22, 2011
Tax liens – public
Time: 10:00 a.m.
Location: Municipal Auditorium
Tax sale list: request by emailing mkennedy@hopewelltwp.org
Registration: at the door

Borough of Hopewell: http://www.hopewelltwp.org

Tax Collector: http://www.hopewelltwp.org/tax_collector_main.html
Mary Kennedy-Nadzak, Tax and Utility Collector
201 Washington Crossing-Pennington Road
Titusville, NJ 08560
Phone: 609-737-0605
Email: mkennedy@hopewelltwp.org

There are two types of tax sales in New Jersey. The accelerated tax sale is held prior to the end of the year for that year’s tax delinquencies. It is a one-time cash inflow benefit, for the first year it is held.

The standard tax sale is held within the current year for delinquent taxes of the prior year. The sale can be held at any time. The tax sale list must be prepared a minimum of 50 days before the sale. The advertisement lists the following property information: block, lot, last assessed owner, location, type of debt, and balance to be sold.

Sales are open to the public. Only the prior year’s taxes and interest, and related costs, are sold. Bidding starts at 18%, and goes down until bidding stops. Bid parameters are set by the Collector, and may be in whole, half or quarter percentage points. In 2010, the tax sale law was amended to allow Collectors to accept 0% bids (vs. 1%). You will need to check with the Tax Collector conducting the sale to see if 0% bids are allowed. Otherwise, after 1%, premiums are bid. A $0 premium is not allowed. Premiums may be offered by hundreds, fifty, etc. 

If a premium is the winning bid, no interest is earned on the original lien, and the premium is paid to the Township to hold. If, after 5 years, there is no redemption of the lien, the Township retains the premium. If within the 5-year period the lien is redeemed, the premium is returned to the lien holder; no interest is paid on this amount. If the lien holder forecloses, the premium remains with the Township. It is only when redemption is made within 5 years that a lien holder receives his/her premium back.Typically, properties with higher valuations will receive larger premiums, as will properties with higher outstanding balances. Higher balances are less likely to be redeemed, so there is a great chance the lien will go to foreclosure.

Payment by the winning bidder is due immediately after the sale. You will want to ask the Tax Collector’s office what type of payment it accepts – this is likely to vary from town to town. The Collector is required to mail all certificates to the lien holders by the end of 10 days. The lien holder is responsible for recording the instrument at the County. Failure to do so in a timely manner can result in a nullification of the document. Effective 2010, the lien holder is legally obligated to provide the Tax Collector a copy of the recorded instrument upon its return from the County.  This copy is made a permanent record.

During the period between the sale and the mailing of the certificate, the property owner may come in and pay off the lien without incurring additional penalties. The lien holder is then notified of the payment and reimbursed.

I'll talk some more about the New Jersey tax sale process in my next blog.

Happy investing,

Michael Williams

P.S. The Platinum Rogue Investor Collection has all the information you need to get started in tax sale investing. Call 816-673-1874 for more information.

Canada Tax Deed Sales

While a lot of Canadians venture into the United States to participate in tax sales, the opposite is not as common. However, you may want to consider tax foreclosure sales in that country (also known as municipal tax sales), as many of them are conducted by public tender, which means you do not have to attend an auction and instead can submit your bid by mail.

Tax sales in Canada are conducted by municipalities, and can be by either public tender or public auction. A tender is a written document that tells the treasurer how much you will pay for the property. At a public auction, participants bid on the property. In Ontario Province, more than 90 percent of the sales are conducted by public tender. The minium tender or bid is the total of the outstanding taxes, penalty, interest, and the municipality's cost to hold the tax sale. The person who submits the highest tender or bid is allowed to buy the property.

When a property is sold at a tax sale, any mortgages on it are eliminated, except for mortgages in favor of the "Crown." The "Crown" refers to the government of a province or the government of Canada, or one of their agencies or crown corporations. Tax sale properties also may be subject to other interests such as easements, restrictive covenants and adverse possession. And as in the United States, if you buy an environmentally contaminated property you could be held legally liable for the cost of an environmental clean up.

Shortly after receiving payment in full, the municipality will have a tax deed registered on title at the local land registery office. Keep in mind that the property owner can redeem at any time after the sale but before the deed is registeted by paying the full amount of taxes and other costs due.

A very nice resource that focuses on sales in the Ontario province is the website OntarioTaxSales.ca. This site provides a wealth of information on the tax sale process, as well as tax sale lists for upcoming sales that include photos, property information and more.

Happy investing,

Michael Williams

P.S. Check out Rogue Investor's comprehensive course manual on tax sale investing in the United States and Canada: www.rogueinvestor.com/government_tax_sales_book.html. Or call 816-673-1874 for more information.


Platinum Rogue Investor Collection

Washington, D.C. Annual Tax Sale

Now that we're all done celebrating the Fourth of July and contemplating the signing of the Declaration of Independence, it's time to think about something more contemporary that occurs in the city of our capital - the annual real property tax sale. Conducted by the Office of Tax and Revenue, this tax lien certificate sale will take place July 18-20, 2011 in Washington, D.C.

The redemption period for these tax lien certificates is a short 6 months, and the interest rate is 18 percent per annum. At the sale, bidding begins at the amount of delinquent taxes and increases in increments. The winning bid amount is the highest bid. There is NO INTEREST given on the overbid amount.

More than 6,200 commercial and residential real property tax liens are being advertised for this year's sale. This list is available on the OTR's website at http://otr.cfo.dc.gov/otr/cwp/view,a,1330,q,594443.asp.

There are a few things you must take care of prior to participating in the sale. First, registration is mandatory, and can be done any time from July 11 until the final day of the sale. Purchasers are required to complete Form FR-500, Combined Business Tax Registration Application, prior to registering. This form is available online. As part of the registration process, prospective bidders also must make a deposit of at least 20 percent of their total bid. A $200 tax sale fee will be added to each property at the time of the sale.

In the fourth month following the last day of the tax sale, the tax lien purchaser may begin a title search. After six months, a court action to obtain the property may be initiated.

Happy investing,

Michael Williams

P.S., The Platinum Rogue Investor Collection has the answers to all your tax sale questions.
www.rogueinvestor.com/government_tax_sales_book.html

Or call 816-673-1874 for more information.

Foreclosing on an Indiana Commissioners Tax Certificate

Last week I talked about buying a tax certificate in Indiana at a Commissioners Certificate Sale. These are unsold properties from the annual tax lien sale that were certified to the Board of Commissioners and have only a 120-day redemption period (vs. 1 year for those sold at the annual sale).  As promised, this week I’ll talk about the process for foreclosing on certificates that are not redeemed. 

Not less than 30 prior to the expiration of the redemption period (which is 120 days from the date of sale), the purchaser must send a Notice of Sale to the legal owner and any persons with a substantial interest of public record in the property that a lien has been sold on their property. The buyer must initiate a title search on the property to identify the owner and other interested parties.

The Notice must include all the information required by state law (see Indiana Code 6-1.1-25-4.5). The notice must be by certified mail and other reasonable efforts to notify the owner. If the property is redeemed, the owner will be required to reimburse the buyer for his/her actual paid title search expenses, not exceeding the amount established by the county, if the buyer files a form 137B with the Auditor prior to the redemption date. If the buyer fails to provide notice or provides insufficient notice as required by IC 6-1.1-25-4.5, the Court may impose a penalty equal to 100% of the purchase price.

The buyer must present a verified petition to the court that issued the original judgment for delinquent taxes and penalties on the property asking the Court to order the County Auditor to issue a Tax Deed if the property is not redeemed from the sale by the redemption period expiration date. If the buyer fails to fulfill the requirements for issuance of a court order directing the Auditor to issue a tax deed, the Court may impose a penalty equal to 25% of the purchase price and refuse to accept the purchaser’s petition for a deed under IC 6-1.1-25-4.6.

The next steps in the foreclosure process are as follows:

1. Present the court with proof that the time for redemption has expired. Also provide copies of all notices given to the owner and any person with a substantial interest in the property, including supporting documents (postal certified mail receipts, etc.).
   
2. Present the Court with evidence of payment of all taxes, assessments, penalties and costs, both at sale and subsequent thereto, and other evidence of compliance with statutory requirements as the court may require.
   
3. Present the Court with a copy of the Tax Sale Certificate.
   
4. Receive a Court Order directing the County Auditor to prepare the tax deed.
   
5. Present the Court Order and Tax Sale Certificate to the County Auditor and receive the tax deed for the property within 30 days.

You can go through the process yourself, or retain the services of an attorney familiar with the state requirements. If you are doing it yourself, be sure to check the relevant portions of the Indiana Code for specific details on this process.

Happy investing!

Michael Williams
816-673-1874


Rogue Real Estate Investor Collection

Indiana Commissioners Certificate Sales

Don’t miss out on upcoming Commissioners Certificate sales in Indiana, with their shortened redemption period!

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

Clearing Title on a Tax Deed Property

Question: Once I get the deed to a tax sale property, will I be able to take out a loan on that house, or will I have to clear the title first?


Answer: You generally will need to clear title before you can take out a loan. If there is a legal challenge period following foreclosure of a property, during which the previous owner or other interested party can challenge the tax sale, you will normally have to wait for that period to expire before you can clear title. In California, for example, the legal challenge period is one year; in Arkansas it is two years. Usually counties/states advise that you not make any major improvements to the property during this time period.

We work with a company that can, in most cases, clear or perfect the title in about 45 days. Their costs are reasonable and they have been doing it for years. This is a wholly separate company, so we will just provide you with the personal contact.


Contact us at 913-381-4520 or info@rogueinvestor.com.
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The Platinum Rogue Investor Collection has the answers to all your tax sale questions!
www.rogueinvestor.com/government_tax_sales_book.html