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Decatur County conducts tax-lien auction; buyers warned liens are not deeds
Summary
SRI Services ran a public tax‑lien auction for Decatur County. Auctioneer Chad Malakout and county staff explained buyers purchase liens (not deeds), outlined redemption interest and reimbursement rules, and sold multiple liens while several parcels received no bids.
SRI Services ran a public tax‑lien auction in Decatur County (date not specified). Auctioneer Chad Malakout opened the sale and walked bidders through rules, warning that buyers at the auction purchase tax liens — not property deeds — and must follow statutory steps to pursue a deed if a parcel is not redeemed.
Malakout told attendees, “You are purchasing a lien on the property. There will be no deed issued to this property today.” He said buyers “cannot go on the property. You cannot evict tenants. You have no rights of ownership today.” He repeated that the county only warrants the parcel number and the amount of taxes due, and urged prospective bidders to do their own research.
Why it matters: A tax‑lien purchaser obtains the county’s lien and limited statutory remedies. If the underlying tax debt is paid (redeemed), the purchaser receives their payment back plus interest; if redeemed is not pursued or succeeds, the purchaser must follow court procedures to seek a deed. The rules for redemption, required notices and timelines are set by state statute and related county procedures referenced during the auction.
Key procedural points explained at the auction
- Interest on redemption: Malakout said a successful lien purchaser is paid 10 percent interest on the minimum bid for the first six months, and 15 percent after six months. Any surplus (amount paid above the minimum bid) earns 5 percent interest.
- Reimbursements and required filings: The county allows reimbursement of up to $150 for title work and $600 for attorney fees if the property is redeemed. Malakout said purchasers must file a “137 b” (referred to in the auction as the redemption filing) and must wait 31 days before filing that form. He advised employing a title company and an attorney because the post‑sale process is “quite arduous.”
- Taxes and deed process: Purchasers must pay subsequent taxes: the sale covers taxes through the end of the current year, but Malakout said purchasers are required to pay spring taxes during the redemption period; if the parcel has surplus, those taxes will be paid from the surplus, otherwise the purchaser must pay them. To obtain a deed after the redemption period, the purchaser must appear before a judge and obtain a court order before the Auditor’s Office will issue a deed. Malakout advised bidders to bring a completed W‑9 and the treasurer’s stamped paid receipt to the Auditor’s Office to receive a certificate.
- Payment and deadlines: Payment for successful bids was required in cash or certified check and had to be paid to the Treasurer’s Office by noon the same day, according to the auctioneer.
Sales at a glance (sale ID → outcome)
- Sale ID 4 — Sold to bidder number 6 for the minimum bid of $3,932.33. - Sale ID 5 — Sold to bidder number 5 for $9,000. - Sale ID 6 — Sold to bidder number 3 for $35,000. - Sale ID 11 — Sold to bidder number 8 for the minimum bid of $285.71. - Sale ID 12 — Sold to bidder number 8 for the minimum bid of $335.60. - Sale ID 20 — No bid registered. - Sale ID 24 — Sold to bidder number 3 for $35,000. - Sale ID 25 — Sold to bidder number 6 for $170,000. - Sale ID 26 — Sold to bidder number 3 for $30,000. - Sale ID 29 — Sold to bidder number 3 for $10,000. - Sale ID 35 — No bid registered. - Sale ID 36 — Sold to bidder number 2 for the minimum bid of $283.22. - Sale ID 37 — No bid registered. - Sale ID 38 — No bid registered. - Sale ID 39 — No bid registered. - Sale ID 43 — Sold to bidder number 2 for $39,509 (listed as minimum bid in the transcript). - Sale ID 41 — Sold to bidder number 6 for the minimum bid of $861.40. - Sale IDs 42–49 — All marked no bid during the auction. - Sale ID 59 — Sold to bidder number 6 for the minimum bid of $2,131.42. - Sale ID 70 — Sold to bidder number 6 for the minimum bid of $4,624.79. - Sale ID 72 — No bid registered.
Discussion versus formal outcomes
The session combined procedural explanation and the public sale of tax liens. Malakout provided rules and cautions (discussion/directions). Each reported “sold” line above is a formal auction outcome recorded in the transcript; parcels listed as “no bid” were left unsold. No additional board motions, votes, or policy decisions were recorded in the transcript.
What to watch next
Successful bidders were instructed to complete paperwork immediately after the auction, secure payment to the Treasurer’s Office by noon, then take a W‑9 and the treasurer’s stamped receipt to the Auditor’s Office to receive the lien certificate. Any purchaser seeking a deed later must pursue the statutory/court process described at the auction.
Ending: The auctioneer closed the sale and asked successful bidders to remain for paperwork processing; county treasurer and auditor staff were present to complete receipts and certificates.
