Porter County Treasurer Mike Bucko is urging folks who have received
certified notice to pay their delinquent taxes or face a tax sale.
According to a statement released on Thursday, certified notice has been
mailed from the Porter County Auditor in accordance to regulations in the
Indiana Code pertaining to tax sales. If you received a certified notice or
first-class mailing you have until 10 a.m. Wednesday, Oct. 20, 2010, to pay
delinquent taxes and be removed from the tax sale list.
After 10 a.m. Wednesday, Oct. 20, you run the risk that the property may
already be sold before you have paid those taxes.
A runner will be going to the Commissioners chambers and check to remove
property from the list if you provide a cash or certified check to make the
payment in the full amount of the minimum bid as required by Indiana Code.
“If you are planning to pay your regular November 10, fall installment in
person next week, I suggest that you wait until after October 22, 2010, to
make an in-person visit to the Treasurer’s Office,” Bucko said.
Many people are not aware of the process of a property tax sale. The
properties are open for bid by page on the list or by tax district at the
total amount due or minimum bid. If nobody is interested in the properties
the auctioneer will move to another page or district. “This can be a slow
and arduous process,” Bucko said.
If a parcel is bid on and sold, it doesn’t mean that the taxpayers have to
move out of the house. The property is not actually sold at tax sales.
Rather, a lien on the property is sold. The bidder, in effect, is offering
to pay the delinquent taxes in exchange for receiving a lien, or a claim
against the property.
Buyers DO NOT automatically receive possession of the property. The property
owner has a limited right to redeem the property (remove the lien). The
owner has one year to redeem the property by buying it back (in effect) from
the successful bidder (lien holder) who has paid the taxes owed Porter
County. No bids may begin lower than the tax sale amount or (minimum bid)
owed the county, which consists of all taxes, delinquent taxes, assessments,
and penalties due at tax sale.
•0-6 Months, the Lien Holder gets a flat 10 percent of the minimum bid
•After 6 months, the rate goes up to a flat 15 percent of the minimum bid
•0-12 Months, the successful bidder gets .027 percent daily (10 percent
annually divided by 365 days) on the amount over the minimum bid or surplus
After 30 days, the successful bidder (lien holder) may charge the taxpayer
for title search, deed and attorney fees incurred. If the lien holder pays
any taxes that are due during the one year redemption period he is entitled
reimbursement plus 10 percent of the tax payment as well.
So what happens after the property is sold?
Example: A taxpayer’s house had taxes owed (a minimum bid) of $1,000 and the
successful bidder bid $5,000. In order to redeem the property, the taxpayer
would have to pay 10 percent of $1,000 ($100), plus .027 percent of the
$4,000 ($1.08) for every day after the sale until the payment is made. So on
the 30th day the redemption of this property would cost the taxpayer $1,000
+ $100 + $32.40 (30 days x $1.08) or $1,132.40. This calculation could be
used for the next 6 months. However, remember that after day 30, additional
charges may be passed on to the owner of record by the successful bidder for
additional title work and attorney fees and these receipted fees will be
added to the cost of redemption.
After 6 months, the bidder’s rate on the minimum bid increases to 15
percent. The formula in the previous example changes to $1,000 + $150 plus
.027% of the $4,000($1.08) per day from the day of the tax sale. So if the
property was redeemed on the 365th day (without additional charges added)
would be $1544.20 plus the other costs.
Now say that the successful bid was $200,000, then the interest payment owed
per day based on the $199,000 is $53.73 per day plus 10 percent or 15
percent of the minimum bid, determined by the days after the Tax Sale when
Example: 30th day after tax sale $1,000 + $100+ $1,611.90 = $2,711.90. Or
else: 365th day after tax sale $1,000 + $150 + $19,611.45 = $20,761.45.
During the one year redemption period you will have the normal property
taxes due that are now on a schedule of May and November of each year. If
that tax is paid by the lien holder he must be reimbursed the tax amount
plus 10 percent like the minimum bid.
To make it easier for the taxpayer you may calculate an estimated amount of
the redemption costs, at www.porterco.org
click on Tax Sale Redemption Calculator under the red Tax Sale Information
box on the right.
The Porter County Treasurer’s Office is providing this redemption calculator
to estimate the cost on any day during the redemption period.
“This calculator will be available on or before tax sale day Oct. 20,” Bucko