IND Tax Lien Notifications
I know the law is clear that in Ind that you must notify the property owner when you buy a tax lien on their property. Do you need to notify them once or twice (at purchase & before 9 months are up). What exactly needs to be in the notification and does anyone have a sample notification notice. Thanks
I know this is more than asked but I wanted to be sure to cover some of the most important details.
Liens will not be removed as a result of the sale. However, if the tax lien buyer complies with the laws and acquire a tax deed on the property all liens will be removed with the exception of Federal and State liens.
If you are the successful bidder, you will receive a tax lien certificate.
The propertyowner's redemption period is twelve (12) months. A flat 10% interest penalty is applied to the minimum sale price if the property is redeemed from the sale date through six months, 15% interest penalty is applied to the minimum sale price if the property is redeemed from six months through twelve months, and a 25% interest penalty is applied to the minimum sale price if the property is redeemed greater than twelve months and before a tax deed is issued. In addition, 10% interest per annum is applied on any overbid.
A tax lien purchaser may pay subsequent taxes that become due on a property. Upon redemption, the tax lien purchaser will receive the taxes paid back with 10% interest per annum applied.
Any costs that a tax lien purchaser incurs, and that are reimbursable according to the law, that are filed with the county auditor will be required to be paid upon redemption.
The holder of a tax sale certificate must acquire a tax deed to the real property within two (2) years after the date of sale. If the tax lien purchaser fails to do so, the lien against the property is terminated (I.C. 6-1.1-25-7(a).
If the parcel is not redeemed and the Tax Sale buyer surrenders the Tax Certificate to receive a Tax Deed, all delinquent taxes, penalties, and/or special assessments which became due subsequent to the Tax Sale must be paid before the Auditor will petition the court to issue a Tax Deed to the Tax Sale buyer.
Not less than three months prior to the expiration of the redemption period (12 months from the date of sale), the purchaser must send a Notice of Sale to the owner and any person with a substantial interest in the property. The Notice must include all the information required in IC 6-1.1-25-4.5.
If you fail to fulfill the requirements for issuance of a court order directing the Auditor to issue a tax deed, i.e., give adequate or timely notice or provide insufficient supporting documentation, the court may impose a penalty equal to twentyfive percent (25%) of the purchase price and refuse to accept your petition for a deed under IC 6-1.1-25-4.6.
If you fail to provide notice or provide insufficient notice as required by IC 6-1.1-25-4.5, that is, you fail to notify the owner and persons with a substantial property interest of public record to the tax sale and date of expiration of the period of redemption, the court may impose a penalty equal to one hundred percent (100%) of your purchase price.
Go to this web site to Search the Indiana Code http://www.in.gov/legislative/ic/code/
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