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Attorney General's Tax Fraud Bill Awaits Governor's Signature

Dave Dugdale

One of the many unsigned bills sitting on Governor Pence’s desk tries to protect homeowners going through the tax sale process from being the victims of fraud. The bill comes as a follow up to a lawsuit from the attorney general.

The legislature and Attorney General Greg Zoeller were able to pass a bill that would ensure the original owner of a home going through a tax sale receives any surplus funds from that sale.

“It really focuses on struggling Hoosier property owners,” Zoeller says.

Last month, Zoeller announced a lawsuit against three LLCs that allegedly were offering those homeowners quitdeeds for a few hundred dollars to walk away from homes that were behind on taxes and being seized for auction. The LLCs would then earn sometimes thousands of dollars in the difference between the sale price and the back taxes owed on the home.

“It prohibits the companies from coming in and getting this money,” Zoeller says.

The bill is awaiting the governor’s signature. But Zoeller says he’s confident that will happen.

Ryan Delaney works on the Innovation Trail project - covering technology, economic development, startups and other issues relating to New York's innovation economy.
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