Forward Statement
2012 and 2013 appear to be years in which we will see a continuation of there being a large amount of tax liens available for purchase in each of the 92 counties of Indiana. This phenomenon of increased tax sale activity is likely the result of the continuing state of the economy as well as the recent tax reassessments and also because of the way the counties now hold tax sales, commissioner’s sale, certificate sales and other sales.. For example, a many counties (perhaps as many as 1/3) will now hold certificate or commissioner’s sales for properties that were not sold the first time around at the tax sale and other sales of county owned property.
As is always the case, each year there are new issues and arguments which we see on the horizon. These issues and other issues will be addressed at the seminar:
- The substantial increase in the amount of tax liens and fines placed by various code enforcement entities of municipalities and counties and how to deal with them. Since the change in the 2006 statute it is not unusual to buy a property at tax sale for $2,000 to $3,000 owed in taxes, but when petitioning for the deed for the tax certificate the buyer discovers that costs, fines and penalties for such things as mowing, repairs, demolitions or board-ups have been added to the property taxes, bringing the taxes due to $15,000 to $25,000. This can be especially burdensome if the building has been torn down. While it is not always possible to remove these additional taxes there are some means, methods and modes in dealing with them which will be discussed at the seminar.
- The use of surplus to pay the taxes that are incurred in the year of the sale. This is an emerging argument the result of which has yet to be decided.
- The differing assessments of property before during and after the tax sale and how to deal with problems that arise.
- The changing nature of banks and mortgage companies due to mergers/consolidations and how to deal with those problems.
These will be some of the things that will affect your purchase and
the resulting litigation in the coming year.
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