the auction. If the homeowner redeems the property within a year, as required under Indiana law, he will owe the tax collector the initial $500, plus a 10% penalty, totaling $550, as well as be required to pay 10% interest on the amount of the bid over the initial tax bill—or $450. The winning bidder will get the capital investment of $5,000 back, plus that 10% interest payment of $450. Approximately 75% of owners redeem their property within a year. However, if owners fail to redeem their property, the winning bidder may file a lawsuit seeking title to the property. Owners have until the selling date to pay all pending delinquent taxes, penalty fees, and costs to prevent the property being sold. In certain states, homes sold at property tax auctions may be redeemed by their owners for some time after those auctions. California doesn’t offer such a redemption period. In other states, the buyer doesn’t own the property itself, but receives a certificate of purchase. The purchaser will gain the title to the property once the redemption period expires. If your lien appears as sold, consider it a wake-up call. An active foreclosure situation is a real nightmare for most people. Once the property taxes are delinquent for a certain amount of time (usually three years, but the delinquency period varies), the taxing authority may start the tax sale. A list is registered in the county records that states all the details about the taxpayer’s identity, the property, and the value of the tax due. This list is most often published and functions as a public record. The taxpayer will always receive a notice of the tax sale, but in most counties finalizing foreclosure requires no judicial action. Where there is a mortgage on the home, a property won’t usually go to tax sale, because the lender will often advance amounts
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