How to Buy Foreclosed Property in Indiana

Investors can buy foreclosed properties at public auctions.

Lenders give a mortgage to home buyers when transacting a loan. Indiana allows a lender to sue in a judicial court to foreclose on the property when the buyer defaults on the loan. The court orders the local sheriff to sell the property on behalf of the lender. Individuals who learn how to track foreclosed property can show up and bid at the sale. They can buy foreclosed property and obtain legal ownership by placing the highest bid at the foreclosure sale.

Instructions

1. Search in newspapers for Indiana foreclosure notices. The sheriff must advertise Indiana foreclosure sales in a newspaper of general circulation in the county where the foreclosed property is located. The ad must run once a week for three straight weeks, starting 30 days before the sale. You can use ThePaperboy online directory of newspapers to find Indiana newspapers in multiple counties. Click on the links for the newspapers to search for the foreclosure notices. Newspapers generally run the foreclosure notices as part of the classifieds section.

2. Find the address of the Indiana foreclosed properties and time and date of the auction in the ad. The sheriff must conduct the sale between 10 a.m and 4 p.m. on any day besides Sunday. According to Indiana law, the sheriff generally conducts the sale at the sheriff's office. You should always check the advertisement for the exact location of the foreclosure auction.

3. Visit the properties to decide which ones you would like to buy. Talk to neighbors of the property or a real estate agent to get an estimate of the value of property in that neighborhood. Estimating the value of the property helps you determine a reasonable price for bidding on the property.

4. Decide how much you are willing to bid on a property. The sheriff will demand immediate payment from the winning bidder. Come up with the funding for the maximum amount you plan to bid so you can immediately purchase any properties for which you place the winning bid. Prepare to have the money with you for the auction.

5. Show up at the foreclosure auction and bid on your chosen properties. Pay the purchase money for any auction you win. The sheriff must give you a deed for the property and file the deed on your behalf with the county recorder. You do not have to pay an extra fee for recording the deed.

Tips & Warnings

• You may also check the doors of the local county courthouse for foreclosure notices. The sheriff must post notices there in addition to the newspaper notices.

• Do not place a bid unless you have cash on hand to purchase the property. The sheriff must sell the property a second time. He can then sue you for the difference between your bid and the winning bid in the second auction (the deficiency amount), damages of up to 10 percent, interest on the amount due and costs of the lawsuit.

References

• Indiana Legislature: Indiana Statutes on the Foreclosure Process and Foreclosure Sales
• ThePaperboy: Listings of Indiana Newspapers