Whether you are a novice or an expert, real estate investing comes with inherent risks. In sales of tax-distressed properties, these investment risks multiply.
Although Indiana county tax sales provide a potentially lucrative source of income for bidders, they often involve neglected or abandoned homes, properties with unclear titles, and parcels unavailable for inspection before purchase.
Due diligence is essential to mitigate these risks. At PureTitle, we help real estate investors and legal professionals through the tax sale process. We offer title review services, guaranteed title insurance, and other tax sale services in Indiana to streamline the process and protect your investment.
How Do Indiana Tax Sales Work?
Indiana has an effective property tax rate of 0.83%, translating into median annual taxes of $1,308. This is quite a bit lower than in the country as a whole, which has an effective property tax rate of 1.10% and a median annual tax bill of $2,690.
Nonetheless, like in any other state, homeowners in Indiana sometimes fail to pay their property taxes. When that happens, the government may hold a tax sale.
Indiana counties sell tax-distressed properties to the highest bidder at auction. After the date of sale, the original homeowner has one year to pay what they owe and reclaim their property. If the homeowner does not pay off their tax debts during this redemption period, the investor has three months to file for the tax deed.
When seeking tax sale services in Indiana, remember that sales fall into two categories: tax lien sales and tax deed sales. You can find both types in Indiana. While tax lien sales and tax deed sales involve real estate with delinquent taxes, they have substantial differences.
Tax Lien Sales
Indiana is one of 28 US states that currently allow tax lien sales. In this type of sale, the highest bidder at auction can buy the lien on the property from the county. This means the new lien owner has the legal right to collect the tax debt, along with interest, from the homeowner.
If the property owner does not pay off the debt in full, the lien holder can foreclose on the home. This makes lien sales an indirect way of investing in real estate. Indiana holds two lien sales per year: a standard sale and a commissioner’s sale to sell off properties that don’t sell the first time.
Tax Deed Sales
In a tax deed sale, the highest bidder purchases the property directly — including the unpaid taxes. In Indiana, tax deed sales result from tax liens that don’t sell in the first two auctions.
That means tax deed sales typically consist of properties that investors see as riskier and less attractive. However, they also provide an opportunity to purchase homes with little competition, which is rare in some real estate markets. Indiana counties conduct one tax deed sale per year, typically in the fall.
Tax Sale Services in Indiana
The experienced tax sale experts at PureTitle can help you navigate the process and mitigate the risks of county tax sales.
- Interested parties research: We provide fast, accurate research support for tax sale titles, including an Indiana insurable abstract, a complete list of interested parties and their addresses, and comprehensive Mennonite research.
- Localized expertise: Our local professionals understand the ins and outs of tax sales in Indiana, helping you comply with state statutes and the underwriting guidelines of the US National Title Insurance Company.
- Guaranteed title insurance: We’ll provide affordable and comprehensive title insurance to protect you against the special risks inherent in Indiana tax sales.
Let PureTitle Simplify the Tax Sale Process
At PureTitle, our tax sale services in Indiana streamline the process for you. Our experts perform title research, offer state-specific guidance, and provide guaranteed tax sale insurance.
Call (504) 217-7986 today or contact us online for more information about our tax sale services in Indiana.
