Tax Lien Certificate - For Sale

3 Replies

I am looking to sell the assignable rights to a tax lien certificate that I won at the Vanderburgh County tax sale on 8/23/2019 for $40,000.  The certificate is for a 5 acre lot of land in Evansville, IN, specifically in Northwest Vanderburgh County in Darmstadt.  We had hoped to eventually redeem the certificate and obtain a tax deed for the property to build a home on; however, our circumstances changed and we have a different target in mind.  The land is worth more than $40,000, and I could eventually sell for a profit once the process is complete and take possession; however, I need the capital now that is tied up in the certificate.

Just briefly on the Indiana tax lien process.  The property owner has 12 months to pay the taxes owed to avoid losing the property.  If paid within 30 days of 8/23/2019, they don't have to pay extra penalties.  If they pay within 6 months, they pay the minimum bid + 10% and a 5% per annum rate on the excess bid.  If after 6 months, they pay min bid + 15% and still 5% per annum on the excess.  Tax lien holder has to give notice after 30 days and again after 12 months.  If not redeemed after 12 months, tax lien certificate holder receives a tax deed and can file an action for quiet title.

I have not engaged a title company to do a title search yet, but I did my own research at the county recorder before the auction and found no liens or mortgages filed against the property.

If you're interested in buying the rights to the certificate and understand the Indiana tax certificate process, please PM me.

Thank you,

Micah

Hi Micah,

If you really need to get the capital back out and are comfortable losing the minimum bid that was paid then self redeem. Indiana allows anyone to redeem a delinquent property. The redemption does not have to be paid by the property owner.  The county will keep the minimum bid and refund the surplus. You can do this anytime during the redemption period so it is always the worst case scenario in Indiana. 

Chris

@Chris B. Yes sir.  I thought I'd try here for a few days before self redeeming it in case a local investor wanted the lien.  It's vacant tillable land that's currently being farmed with road frontage and utilities access in a highly desirable area.  I'd hate to let it go back to the owner, because I'm optimistic the owner will not pay the taxes and the process would go through to obtaining a deed.  I paid $40K and asking $40K, so I'm just looking avoid paying the minimum bid of $550 to self redeem.  If I had the names and numbers of the 8 or so bidders on this property at the auction I'd reach out to them and offer it.