If you have fallen behind on property taxes, having a tax delinquent house in Indiana can feel like a countdown you cannot see the end of. The good news is that the process moves in stages, not all at once, and Indiana law gives you real opportunities to catch up or sell before anyone else gains a claim on your home. Here is what actually happens and what your options are at each point.
How a House Becomes Tax Delinquent in Indiana
Property taxes in Indiana are billed twice a year, and once a payment is missed, penalties and interest begin adding to the balance. The Indiana Department of Local Government Finance publishes a plain-language Citizen’s Guide to Property Tax that explains how bills, penalties, and deadlines work statewide, which is worth reading if you want the full picture beyond what is covered here.
Your county treasurer’s office is the authority on your specific account. Only they can tell you the exact balance owed and the real deadline for your property, since the timeline and dollar thresholds can vary by county and change from year to year. A tax delinquent house does not become a lost house overnight, but the sooner you know your real numbers, the more choices you have.
What to do here: Call your county treasurer’s office directly and ask for your current balance and the next relevant deadline in writing. This single call gives you the real picture instead of a guess.
What Happens if the Taxes Stay Unpaid
If a tax delinquent house in Indiana stays unpaid long enough, the county can eventually offer the delinquent taxes, or a lien tied to them, at a tax sale. At that point, an outside bidder can acquire a legal claim on the property, though this does not transfer ownership immediately. A redemption period generally follows, during which the debt can still be paid off and the claim removed, though the exact window and rules depend on the type of sale and the county running it.
What to do here: If you have received a tax sale notice, do not treat it as final. Call your treasurer’s office the same day to confirm exactly where things stand and what your redemption options are.
Ways to Catch Up Before It Gets to a Tax Sale
Most Indiana counties offer some flexibility before a tax delinquent house reaches a tax sale, including:
- Payment plans. Many county treasurers allow delinquent taxes to be paid off in installments rather than one lump sum.
- Paying what you can, when you can. Partial payments usually still reduce the balance and can slow how quickly penalties accrue, even if they do not resolve the debt outright.
- Refinancing or a home equity option, if your income and equity support it, to pay the balance off in one move.
- Selling the house, with the taxes paid directly out of the closing proceeds, if keeping the house is not realistic.
What to do here: Ask your county treasurer specifically whether a payment plan is available for your account. Not every county advertises this option clearly, so it is worth asking directly rather than assuming it does not exist.
When Selling Makes More Sense Than Waiting
For some homeowners, a tax delinquent house is really a symptom of a bigger problem: the mortgage, the taxes, and the upkeep together are no longer sustainable, and no payment plan changes that. In that case, waiting usually just adds more penalties and narrows the options further.
Selling is not automatically the right move for everyone. If a payment plan or a short delay genuinely lets you catch up and you want to keep the house, that should come first. But if staying is not realistic, selling resolves the debt cleanly: the title company pays the back taxes directly out of the sale proceeds at closing, the debt is settled, and whatever equity remains above that comes to you.
Frequently Asked Questions
How do I find out if my house is actually tax delinquent?
Contact your county treasurer’s office directly. They can confirm your exact balance, due dates, and whether any sale process has started, which is more reliable than estimating from your last tax bill.
Will I lose my house immediately if I am behind on taxes?
No. A tax delinquent house does not immediately change ownership. There are typically notices and a redemption period before anything is final, and the exact timeline depends on your county.
Can I sell the house myself while taxes are owed?
Yes, in most cases. The unpaid taxes are simply paid off from the sale proceeds at closing, the same way an outstanding mortgage balance would be handled.
Do I have to pay the back taxes myself before selling?
No. That is exactly what closing handles. The title company pays what is owed directly out of the proceeds, so you do not need to come up with the money separately.
What if there is also a mortgage or other lien on the house?
The title company typically sorts out all payoffs and liens at closing, taxes included, the same way it would with a home that has no tax issues.
If Staying Isn’t Realistic, We Can Help You Sell Before the Deadline
If you have looked at your options and selling is the right move, see our full guide to selling a house with back taxes owed in Northwest Indiana, or call Preferred Home Buyer at (219) 348-8098. The conversation is free and confidential, and we will tell you honestly if selling is not your best option.
Preferred Home Buyer has been buying houses across Lake, Porter, Jasper, and LaPorte counties since 2011. BBB A+ accredited.