Property taxes fall behind for all kinds of reasons: a lost job, a house that was inherited, a rental that stopped paying, or a bill that went to an old address. In Indiana, unpaid taxes can lead to a county tax sale. The good news is that there are clear steps and deadlines, and you usually have more time than you think.
When does a house go to tax sale in Indiana?
- Taxes are paid in two installments. Indiana property tax payments are generally due in May and November.
- Eligible for tax sale. A property can be put on the county's tax sale list when the prior year's spring installment is still unpaid.
- Notice. The county treasurer and auditor publish a list of properties and mail notice to the owner of record before the sale. Each county posts its own dates, usually on the county treasurer's website.
The redemption period
A tax sale doesn't hand the house to the buyer right away. The buyer gets a certificate, and the owner has a redemption period to pay what's owed and keep the house.
- Usually one year after the sale. In some cases, like when the county keeps the certificate, it can be as short as 120 days.
- The cost goes up. To redeem, you pay the amount owed plus a penalty that grows over time, plus any taxes and costs the buyer paid after the sale.
- If it isn't redeemed, the buyer can ask the court for a tax deed. Once a tax deed is issued, the owner can lose the house and any equity in it.
Your options
- Call the county treasurer now. Ask exactly what you owe, the deadline, and whether a payment plan is possible before the sale.
- Check for missed deductions. The homestead and other deductions can lower the bill. The county auditor's office can tell you what you qualify for.
- Pay it with help from family or a loan. If you want to keep the house, paying before the sale is the cheapest option.
- Sell the house. If you can't catch up, selling before the sale, or during the redemption period, lets the back taxes get paid from the sale at closing, and you keep the rest instead of losing it.
- Talk to an attorney. If a tax deed case has started, an Indiana real estate attorney can tell you what rights you still have.
Watch out for scams
Owners on a tax sale list often get letters and calls. Never pay an upfront fee to anyone who offers to "stop" a tax sale, and don't sign a deed without reading every page. A real buyer closes through a licensed title company, and the back taxes are paid at closing, right on the settlement statement.
How we can help
We buy houses with back taxes all over Northwest Indiana, as-is. We can make an offer quickly and close through a local title company, often fast enough to beat a tax sale date. The taxes get paid off at closing, and you get the rest. Call (219) 308-9106 for a no-obligation offer, or fill out the form.
This guide is general information, not legal or tax advice. Deadlines and amounts vary by county. Check with your county treasurer and an Indiana attorney about your situation.