Getting Your Home Back After a Property Tax Sale in Indiana

Unless you've abandoned the property, you may be able to redeem your Indiana home after losing it to a tax sale.

If you don’t pay your property taxes in Indiana, you could lose your home at a tax sale. The good news is that following the sale you get some time to buy back the home. This time period is called a “redemption period.” However, if you abandon the home or don’t pay up during the redemption period, you’ll lose your chance to keep your Indiana home.

Indiana Tax Sales

If you don’t pay your Indiana taxes, the county treasurer may sell your property to a new owner at a tax sale, which is an auction. (For details on the tax sale process in Indiana, see  What Happens If I Don't Pay Property Taxes in Indiana.)

Your Right to Redeem the Home After the Tax Sale

At the auction, your home is sold to the highest bidder subject to your right of redemption. This means that after the sale you get a certain amount of time in which to pay off the debt (plus various other amounts) in order to get your house back (redeem the property).

Notice about your right to redeem.  No more than 90 days after the sale, the person who bought your home at the sale (the purchaser) must send you a notice about your right to redeem the home (Ind. Code § 6-1.1-25-4.5).

How long you get to redeem.  In Indiana, you get one year after the sale to pay the redemption amount and retain possession of your home (Ind. Code § 6-1.1-25-4).

Exception for abandonment.  You can’t redeem if you abandon the home. In the past, Indiana law gave homeowners 120 days to redeem the home even if they had abandoned (that is, permanently moved out of) the property. However, a new law passed in 2015 (SB 415) took away this right. Now, there is no right to redeem your home if it is vacant and abandoned (Ind. Code § 6-1.1-25-4).

How Much You'll Have to Pay to Redeem Your Indiana Home

To redeem your home after a tax sale, you’ll likely have to pay:

  • 110% of the minimum bid required at the auction (which includes taxes, penalties, and costs) if you are redeeming the property within six months after the sale date
  • 115% of the minimum bid amount if redeeming the property more than six months, but not more than one year, after the sale date
  • 5% per year on the amount of the purchase price that exceeds the minimum bid amount
  • 5% per year on any subsequent taxes or special assessments that the purchaser paid in the year after the sale
  • all additional taxes, special assessments, interest, penalties, and fees on the property that accrued after the sale, and
  • costs (Ind. Code § 6-1.1-25-2).

How to Reduce the Taxes You Must Pay Before a Tax Sale

While you can, in most situations, redeem your home after a tax sale in Indiana, it is typically a good idea to take steps before you get behind on your property taxes to make them more affordable. You could, for example:

Tax Sale Laws in Indiana

To read the statutes that govern redeeming your home after a tax sale in Indiana, go to Title 6, Article 1.1, Chapter 25, § § 6-1.1-25-1 through 6-1.1-25-20 of the  Indiana Code.

Talk to a Lawyer

Start here to find foreclosure lawyers near you.

How it Works

  1. Briefly tell us about your case
  2. Provide your contact information
  3. Choose attorneys to contact you
FEATURED LISTINGS FROM NOLO
Swipe to view more
FACING FORECLOSURE ?

Talk to a Foreclosure attorney.

We've helped 75 clients find attorneys today.

How It Works

  1. Briefly tell us about your case
  2. Provide your contact information
  3. Choose attorneys to contact you