Vanderburgh County Tax Sale Sets Records

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For Immediate Release

Sept. 20, 2011

Vanderburgh County held its annual property tax sale at the Civic Center on Tuesday. Vanderburgh County Treasurer Rick Davis played the part of the auctioneer, offering 523 properties that have outstanding property tax delinquencies from May 10, 2010, or before. The county brought in a total of $2,261,607.76 in revenues from the tax sale, far more than the $853,772.82 brought in during 2010 and $930,856.53 brought in during 2009.

On Tuesday, 169 of the delinquent property liens were purchased by bidders. Heading into the tax sale, there was a total of $1,628,002.37 in delinquencies eligible for tax sale, meaning the county auction brought in $1.4 million in surplus, more than 3 times the amount of surplus brought in during the 2010 tax sale. The 354 properties that did not sell at Tuesday’s property tax sale can now legally be taken possession by the Vanderburgh County Commissioners within the next six months and then brought before a Commissioners’ Auction within the next year.

A total of 68 bidders took part in the auction, compared to only 30 last year. Thirty-five bidders purchased delinquent liens in 2011, compared to only 18 purchasing delinquent liens in 2010. The entity with the largest number of winning bids was Inner City Remodelers, LLC, from Franklin, Ind., which bought 43 of the delinquent parcels, spending $146,163.48 in the process. Wiper Corp., doing business as Banco Popular, 7900 Miami Lakes, Fla., paid the most money, purchasing 10 delinquencies for a grand total of $442,500.

The lowest winning delinquency bid came for 816 E. Louisiana., which sold for $102.49, and went to Inner City Remodelers. The largest delinquency bid, $170,000, came from a parcel located at 5900 Oak Grove Rd., purchased by Banco Popular.

Davis credited his co-workers for helping Vanderburgh County taxpayers get their bills caught up. Treasurer’s Office staff made telephone calls to delinquent property owners this summer in an effort to remind delinquent property owners of the impending tax sale. The eligibility list of delinquent properties was at 1,447 shortly before the July 1 certification date, and the Treasurer’s Office staff helped drop that number down to just 997 properties on July 1. Further efforts by the Treasurer’s Office staff members dropped the tax sale number down to the 523 that were sold on Tuesday.

The number of bidders increased dramatically from last year to this year. Consequently, the county brought in $1.4 million more than last year at Tuesay’s tax sale.

Davis said the economy has a great deal to do with the increase in tax sale activity.

“Interest rates on investments are not paying off right now,” said Davis. “A 10-year Treasury note is earning only about 2% right now, but investors flocked here because they can earn 10% to 15% on their investment in a year or less at these tax sales, by state statute.”

Davis said a vast majority of unsold properties were vacant and the tax sale is a good procedure to get the homes back in good standing.

“Last year I talked to several businesses who purchase these liens for a living, and they said banks really tightened their grip on the amount of loans they offer for these types of investments in the past,” said Davis. “Apparently, the economic risk is now worth the reward for people and businesses who invest in these types of auctions.”

Davis noted that individuals who purchased tax sale properties on Tuesday do not actually own the property. Instead, they have purchased a lien on the property. Delinquent taxpayers have one full year to pay the delinquency, plus interest, in order to redeem their property.

Here are some historical facts and figures concerning the tax sale compared to previous years. All properties that were offered at tax sale are attached as an excel spreadsheet.

Tax sale 2006 448 properties for sale 303 sold took in 3800171.79 surplus amount 3275339.84

Tax sale 2007 422 properties for sale 288 sold took in 8904139.79 surplus amount 7798247.47

Tax sale 2008 617 properties for sale 331 sold took in 3984812.50 surplus amount 3182361.14

Tax Sale 2009 596 properties for sale 216 sold took in 930,856.53 surplus amount 402444.87

Tax Sale 2010 585 properties for sale 133 sold took in 853,772.82 surplus amount 452948.06

Tax Sale 2011 523 properties for sale 169 sold took in $2,261,607.76 surplus amount $1,407,834.94

****Surplus = Late tax amount on a home = $1,000 and someone bid $1,500 … surplus amount is $500.

A few more nuggets of information regarding Last Year’s Tax Sale:

In 2010, there were 30 bidders, and 18 different entities came away with winning bids.

In 2011, there were 68 bidders, and 35 bidders purchased liens.

In 2010, Indiana Renewal and Development LLC of Indianapolis bought the most properties: 55 (spending $104,069.12).

In 2011, Inner City Remodelers, LLC, from Franklin, Ind., bought the most properties: 43 (spending $146,163.48).

In 2010, SFS LLC of Birmingham, AL, dropped the biggest amount of money on winning bids, spending $238,807.82 on 10 winning bids.

In 2011, Wiper Corp., doing business as Banco Popular, 7900 Miami Lakes, Fla., paid the most money, purchasing 10 delinquencies for a grand total of $442,500.

In 2010, Parcel # 82-09-03-014-083.047-027; 2223 Van Bibber Ave, sold for $166.11 (lowest winning bid, purchased by Marjorie Angermeier, Evansville)

In 2010, Parcel # 82-04-32-002-650.008-019; 7221 Greendale Dr, sold for $80,000.00 (highest winning bid; went to Halifax)

The tax sale list is certified on July 1 of each year. To end up on the certified tax sale list, a property owner must be delinquent from the spring of the prior year. FOR 2011, folks who had not paid their property tax bills that were due on May 10, 2010, or before, ended on the tax sale list.

When we certified the tax sale list on July 1, 2010, there were 1,266 properties on the tax sale list, down from 1,494 the year before. When we held the tax sale on Aug. 31, 2010, that number was whittled down to 585 properties. In 2009, there were 596 properties at tax sale.

When we certified the tax sale list on July 1, 2011, there were 997 properties on the tax sale list, down from 1,266 the year before. The “eligibility list” in the weeks before the July 1 deadline was actually 1,447. When we held the tax sale on Sept. 20, 2011, that number was whittled down to 523 properties. In 2010, there were 585 properties on the tax sale list.