Can you sell a house after it went to a tax sale?

The short answer

Yes, until the redemption deadline. The owner, or the heirs if the owner has died, still owns the house and can sell it. The redemption amount is paid to the county at closing, the same way a mortgage payoff is, and the rest goes to the sellers.

How it works at closing

A title company searches the title, finds the tax sale and gets the exact redemption amount from the county auditor. At closing it pays that, any mortgage and other liens, and the closing costs out of the sale price. Each owner gets their share of what's left.

When the owner has died

Someone needs authority to sign, and every heir has to be part of the sale. That usually means opening an estate or recording an affidavit a probate attorney prepares. See do we need probate and when an heir won't sign.

Leave room before the deadline

A listing with an agent usually takes a few months to close. A cash sale can close in a few weeks once the paperwork is ready. Either way, tell whoever you work with the redemption deadline on day one, and plan to close well before it, because a title company won't close on a house the buyer already has a deed to.

Ways to sell

Redeem first, then list it. Usually the most money, if someone can pay the redemption and the house shows well.
List it with the redemption paid at closing. Same result, without anyone fronting the money, if there's enough time.
Sell as is to a cash buyer. Faster and less money. That's what we do: we buy the whole house from every owner at once and the title company pays the county and each heir.