FAQs Archive | Page 2 of 3 | Louisiana Tax Sale Lawyers

Q: DEALING WITH OTHER TAX SALE PURCHASERS

It is possible there is or will be an earlier tax sale, another city/parish tax sale from the same year, and/or a later tax sale of the tax sale property you just purchased. You may want to redeem the other tax sale, buy out the other tax sale purchaser’s interest, or sell your interest to the other tax sale purchaser. Louisiana Tax Sale Lawyers can explain the advantages and disadvantages of different strategies, help you choose the strategy that is best for you, and help you determine the best price to pay or accept to buy or sell a tax sale certificate.

Q: DO YOU HAVE TO PAY LATER YEARS' TAXES?

The law says later years’ taxes shall be “ assessed to and paid by the tax sale purchaser” until the property is redeemed. The primary risk of not paying later years’ taxes is the property may be sold at a later tax sale. If that happens, you will have the right to redeem or annul the later tax sale. There is no “best” strategy. Louisiana Tax Sale Lawyers can help you weigh the benefits and risks of different strategies.

Q: WHAT HAPPENS IF A TAX SALE PROPERTY IS SUBJECT TO BOTH CITY AND PARISH TAXES?

Properties subject to city and parish taxes may be sold at separate city and parish tax sales in the same year. When that happens, the city tax sale will be subject to the parish tax sale. Louisiana Tax Sale Lawyers can explain the risks and rewards of investing in those parishes and suggest strategies for protecting your investment.

Q: WHAT HAPPENS AFTER THE TAX SALE?

Payment is required at the time of the tax sale or a few days later. Some auctions require advance deposits or proof of funds. If you do not pay, you may be banned from future tax sales. A few weeks after the tax sale you should receive a tax sale certificate. The tax debtor and other interested parties (such as mortgagees or lienholders) have three years (18 months for blighted/abandoned properties) to redeem the tax sale. The redemption period starts on the day the tax sale certificate is recorded in the conveyance records.

Q: SHOULD YOU BID DOWN TO ONE PERCENT (1%)?

The current reality is that many tax sale properties are bid down to 1%. If you are not the first 1% bidder, you may not win that property. As the redemption price is the same, the risk is that the tax sale will not be redeemed. One way to reduce risk is to buy the properties most likely to be redeemed. You can also minimize risk by buying more properties. This may allow losses on unredeemed properties to be offset by returns on redeemed properties and/or profits on properties to which you acquire title.

WHAT DOES “DULY NOTIFIED” MEAN?

DEALING WITH OTHER TAX SALE PURCHASERS

DO YOU HAVE TO PAY LATER YEARS’ TAXES?

WHAT HAPPENS IF A TAX SALE PROPERTY IS SUBJECT TO BOTH CITY AND PARISH TAXES?

WHAT HAPPENS AFTER THE TAX SALE?

SHOULD YOU BID DOWN TO ONE PERCENT (1%)?

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