Unusual Tax Lien Auction Requirement

[Greg C.]

Hello All,

Hoping that someone here may be able to offer some advice. One of the Indiana tax lien auctions I am interested in taking part in requires a letter of credit. The auctioneer website says the following: 

Please provide a letter of credit from your banking institution on official letterhead signed by bank officer/employee. The letter must indicate that you or your business is/are a customer in good standing. The bank will honor and guarantee payment to the County Treasurer for any purchase made at the tax sale auction up to the amount of $_______________. This commitment to assure payment should not expire less than 30 days from the date of issuance.

Is this a standard requirement for tax lien auctions in the State of Indiana? I understand that each county sets its rules, but this makes entering the auction far more complicated then I had originally thought it would be. I have never had a letter of credit issued by my bank before, and am not even sure what metrics they look for in such an agreement (i.e., Credit Score, Account Balance, etc.) nor am I sure how long the process takes. If anyone has been through this and would be willing to offer some advice, I would deeply appreciate it.