Indiana Counties

State Auction Process of Indiana

Indiana follows a tax lien system where liens are sold against properties when owners fail to pay their taxes. Tax sales in Indiana are handled by the county treasurer’s office. These sales typically take place in the fall.

Tax Lien Process in Indiana

Here are the key points to understand about the tax lien process in Indianapolis, Indiana:

1. Tax Lien Sale: When property owners become delinquent on their taxes, a tax lien is sold against the property instead of the property itself. This gives the tax lien holder the right to collect the past-due taxes along with interest.

2. Overbid Auction Method: Indiana utilizes the overbid auction method for tax liens. Bidders compete to pay the highest amount for the lien, which consists of delinquent taxes, penalties, and interest owed on the property.

3.Penalties and Interest: The return for tax lien investors in Indiana is a flat 10% penalty on the total amount paid in taxes and fees during the first six months if the property is redeemed between months six and twelve. After twelve months, the penalty increases to a flat 15%. It’s important to note that these penalties apply only to the taxes and fees, not the overbid.

4.Annual Interest on Overbid: Indiana provides a 5% annual interest on the overbid amount, which is the difference between the original bid and the amount paid by the investor. However, this interest does not apply to the penalties, which are solely based on the taxes and fees.

5.Redemption Period: The redemption period for tax liens in Indiana is one year. If the property owner fails to redeem the lien within this period, the lienholder can proceed with foreclosure following the specific methods outlined by state statutes.

6.Registration and Bidding: Registration processes for tax lien sales may vary by county. Many counties, including Indianapolis, offer online bidding through their own software or a popular third-party service called SRI Services (sriservices.com).

7.Commissioner’s Certificate Auction: Unsold liens are issued to the county board of commissioners and sold through a commissioner’s certificate auction at a later date. The terms of the auction remain the same, but the redemption period is reduced to 120 days from the date of the sale.

Foreclosure Process in Indiana

Foreclosures in Indiana are judicial, meaning the lender must file a lawsuit in court to initiate the foreclosure process.

1. Federal 120-Day Waiting Period: Federal mortgage servicing laws require the lender to wait at least 120 days after you become delinquent before starting a foreclosure. During this period, you can submit a loss mitigation application for foreclosure avoidance assistance.

2.Pre- foreclosure Notice: If the property is your primary residence, the lender must send a notice at least 30 days before initiating foreclosure. The notice will inform you of the default, suggest contacting a mortgage foreclosure counselor, explain your options if the lender obtains a foreclosure judgment, and provide contact information for the Indiana Foreclosure Prevention Network for assistance.

3. Lawsuit and Default Judgment: The lender initiates foreclosure by filing a lawsuit and serving you with a copy along with a summons. If you do not respond to the lawsuit, the lender automatically wins, and a default judgment is issued, allowing the property to be sold to pay off the mortgage debt.

4. Litigation Process: If you answer the lawsuit, the case will proceed through the litigation process. The court will evaluate the evidence, and if the lender prevails, a judgment and order will be issued, authorizing the sale of the home at a foreclosure auction.

5. Notice of Sale: Before the foreclosure sale, the sheriff, who conducts the sale, will post a notice at the courthouse and advertise it in a newspaper for at least three weeks, starting at least 30 days before the sale. The homeowner will also receive a copy of the notice of sale.

Deficiency judgments in Indiana

In Indiana, when a foreclosure sale fails to cover the remaining balance on a home loan, a deficiency balance may arise. If the lender obtains a personal judgement against the borrower for this deficiency, it is known as a “deficiency judgement.”

Indiana law allows lenders to pursue deficiency judgments, but there are specific circumstances involved. After the foreclosure lawsuit begins, there is typically a waiting period of at least three months before the lender can sell the property. However, borrowers have the option to waive this waiting period, preventing the lender from obtaining a deficiency judgement. If a deficiency judgement is obtained and not waived, the lender can use various collection practices to recover the balance, such as bank levies or wage garnishments. In some cases, filing for bankruptcy may be a viable option to eliminate the deficiency.

Counties information

County	Sale Location
Adams	Council / Commissioners Room, Room 100 Adams County Service Complex, 313 W. Jefferson St., Decatur, In 46733
Bartholomew	Online – www.zeusauction.com
Benton	Courthouse Commissioners Room
Blackford	Courthouse 2nd Floor
Carroll	County Courthouse Commissioners Meeting Room
Cass	Commissioners’ Hearing Room 2nd Floor
Clark	Online – www.zeusauction.com
Clay	Commissioners’ Courtroom #106
Crawford	Online – www.zeusauction.com
Daviess	Government Center – Commissioners’ Room
Dearborn	165 Mary St Henry Dearborn Room 1st Floor
Decatur	County Courthouse – Meeting Room
Dekalb	Courthouse – Commissioners’ Courtroom
Dubois	Online – www.zeusauction.com
Elkhart	Elkhart County Administration Building, Room 104, 117 North Second Street, Goshen, Indiana
Fayette	Commissioners’ Meeting Room
Floyd	Online – www.zeusauction.com
Fountain	Community Room in the Lower Level of the Courthouse
Franklin	2nd Floor Room 203
Fulton	Commissioners Meeting Room
Gibson	County Courthouse
Grant	County Complex, Council Chambers
Greene	Commissioners’ Room
Hamilton	2nd Floor Historic Courtroom, 33 N 9th St., Noblesville, In 46060
Hancock	Online – www.zeusauction.com
Harrison	Harrison County Government Center – Commissioners’ Room
Hendricks	Hendricks County Government Center – Room 4&5
Howard	Commissioners’ Meeting Room 338
Huntington	Gar Room 2nd Floor Of Courthouse
Jackson	Courthouse – 2nd Floor Courtroom
Jasper	Courthouse – Commissioners’ Room
Jay	Commissioners Room
Jefferson	911 Building, 620 Green Road, Madison, IN 47250
Jennings	Commissioners’ Meeting Room
Johnson	Commissioners’ Auditorium
Knox	1st Floor of County Courthouse
Kosciusko	Old Courtroom, 3rd Floor, County Courthouse, 100 W Center St, Warsaw, IN 46580
Lake	Online – www.zeusauction.com
LaPorte	Laporte County Fairgrounds: 2581 W State Road 2, Laporte, IN 46350
Lawrence	Online – www.zeusauction.com
Madison	County Courthouse – Commissioners’ Meeting Room
Marshall	Commissioners’ Room County Building
Martin	Commissioners’ Meeting Room
Miami	Courthouse, 1st Floor G.a.r. Room
Monroe	Online – www.zeusauction.com
Montgomery	Montgomery County Government Center, Community Meeting Room, 1580 Constitution Row, Suite E, Crawfordsville, IN 47933
Morgan	180 S Main St, Martinsville, IN; Lucille Sadler Room A””
Newton	Commissioners’ Room
Noble	109 N York, Albion, IN 46701
Ohio	Conference Room – Courthouse
Orange	Office Building
Owen	Commissioners’ Room 2nd Floor Courthouse
Parke	Parke County Courthouse Foyer
Perry	Commissioners’ Meeting Room
Pike	Courthouse Basement Auditorium
Porter	Administration Center Commissioners’ Chambers
Posey	Hovey House, Commissioners Room
Pulaski	County Highway Garage 1131 N Us Highway 35, Winamac, In 46996
Putnam	Lobby Of Courthouse
Randolph	Randolph County Courthouse – Commissioners’ Room, 3rd Floor
Ripley	Commissioners’ Room
Rush	Rush Co. Courthouse Commissioners’ Room
Scott	Courthouse – Comm Room
Shelby	County Annex
Spencer	Commissioners’ Room
St Joseph	Online – www.zeusauction.com
Starke	Courthouse Annex Commissioners’ Meeting Room
Steuben	Multi-Purpose Room – Basement
Sullivan	Courthouse Rotunda
Switzerland	County Courthouse Vevay In 47043
Tippecanoe	Tippecanoe County Office Building, Tippecanoe Room
Tipton	Tipton County Courthouse 1st floor meeting room
Union	Commissioners’ Room
Vanderburgh	Old National Events Plaza, 715 Locust Street, Locust Room A, Evansville, In 47708
Vermillion	Vermillion County Courthouse
Vigo	Online – www.zeusauction.com
Wabash	Courthouse – Commissioners’ Room 2nd Floor
Warren	Lower Level Of The Courthouse
Warrick	Online – www.zeusauction.com
Washington	Courthouse – 2nd Floor Old Circuit Courtroom
Wayne	Admin Building Commissioners’ Chambers
Wells	Courthouse
White	Online – www.zeusauction.com
Whitley	Commissioners’ Room, 1st Floor, County Government Center

In Summary

The important points of the state auction process in Indianapolis are summarised below-

1. Type of auction– Tax Lien

2. Time and location– Varies according to county, held usually in fall

3. Redemption period– 1 year

4. Type of Foreclosure- Judicial

5. Foreclosure Redemption Period– 3 months