What is the Right of Redemption in Foreclosure in Indiana?

Full question:

We are thinkings about buying a house that is going to be up for tax sale but we heard that the owner has 1 year to make good on the back taxes if the person pays the bidder the amount the bidder has paid on the house and the taxes is this right?

• Category: Real Property
• Subcategory: Foreclosure
• Date: 04/07/2025
• State: Indiana

Answer:

Indiana’s redemption statute found at I.C.§ 32-29-7-7, which holds that a right of redemption is terminated immediately upon the foreclosure sale.

IC 32-29-7-7
Redemption by owner before sheriff's sale
Sec. 7. Before the sale under this chapter, any owner or part owner of the real estate may redeem the real estate from the judgment by payment to the:
(1) clerk before the issuance to the sheriff of the judgment and decree; or
(2) sheriff after the issuance to the sheriff of the judgment and
decree;
of the amount of the judgment, interest, and costs for the payment or satisfaction of which the sale was ordered. If the owner or part owner redeems the real estate under this section, process for the sale of the real estate under judgment may not be issued or executed, and the officer receiving the redemption payment shall satisfy the judgment and vacate order of sale. However, if the real estate is redeemed by a part owner, the part owner shall have a lien on the shares of the other owners for their respective shares of the redemption money, with interest at the rate of eight percent (8%) per annum, plus the costs of redemption. The lien shall be of the same force and effect as the judgment lien redeemed by the part owner and shall be enforceable by appropriate legal proceedings.