Sheriff's Sales (Courthouse Steps)

[Jordan Falls]

Hello all!

I have a quick question for those who are invested in the Northwest Indiana (NWI) market.  I have had many of my investor friends talk to me about the monthly tax sales at the courthouse in Lake County. I have not done much research on the topic, because I prefer to have an immediate transaction as opposed to investing and having money tied up for a year.

My question is, have any of you had a success story from tax sales?  It is my understanding that if you win a bid on a property your money is tied up in an interest bearing account until one calendar year has passed, giving the property owner a grace period to become current on their property taxes.

I realize that there are many deals to be found at these auctions, but I'm wondering if it is actually worth it.  My biggest concern in locking in liquid capital in an account for a year with the possibility of "no deal" and having the ability to invest it somewhere else.

Any thoughts or insight would be greatly appreciated.  I have no experience with tax sales and I know these kinds of sales can vary state by state and county by county.

Thanks!

[Adrien C.]

Hi Jordan - the tax sales are in September and March. The monthly sales are the sheriff sales which are foreclosure sales. Those sales have no redemption period and you can take possession immediately. As far as tax sales, the September sale starts Monday and it's online bidding. If you haven't registered yet, it's too late. The sale is a tax lien sale. The current owner has 1 year to redeem. For the average person, it's 15-18 months before you get the deed because of the court proceedings needed after the redemption period. The March sale is the leftovers of Septmebers sale and the redemption period is 120 days. The risks are the house is damaged, torn down, burnt down, etc and your money is gone. Or like you me mentioned, they redeem and all you get is some interested paid back. There are deals on the mls and with wholesalers so if you're looking for a flip, I'd hold off locking up capital for 18 months.