Tax Lien's - Louisiana
Sorry about the mold post. Chalk it up to being a newbie and being in wrong forum.
I went to a seminar in New Orleans that the sheriff put on regarding buying foreclosures. He was asked about tax liens and he said it was ridiculous to put your money in tax liens here. They have 3 years to pay and then you can't get the people out of the property if they don't. I'm not sure that is all correct. Does anyone have any "true" info regarding Louisiana.
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On 2003-10-14 09:42, BBCProperties wrote:
Sorry about the mold post. Chalk it up to being a newbie and being in wrong forum.
I went to a seminar in New Orleans that the sheriff put on regarding buying foreclosures. He was asked about tax liens and he said it was ridiculous to put your money in tax liens here. They have 3 years to pay and then you can't get the people out of the property if they don't. I'm not sure that is all correct. Does anyone have any "true" info regarding Louisiana.
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Hi BBC!
The sheriff is partially correct. There is a three year redemption period on Louisiana's delinquent tax Deeds (they don'f sell liens).
They pay a very nice 17% per annum (5% penalty and 1% per month) and 12% on subsequent taxes that become due, that you, the delinquent tax deed buyer, are also responsible for paying.
However, La is one of the few states that auctions off their deeds by determining by the bidding process who will accept the Least Undivided Interest in the property.
Usually, with tax foreclosed property, if the homeowner doesn't redeem or pay the delinquent tax, the property goes, free and clear to the buyer of the lien or deed.
In Undivided Interest states, (Iowa is another one) you don't get title to the whole property. You get the percentage ownership or Undivided Interest you agreed to at the deed auction, with the winning bidder accepting the lowest percent.
So if you bid 40% ownership and the owner defaulted, you would now receive a deed representing ownership of 40% of the property. Since it is an Undivided Interest, you cannot force the owner to sell, or move even if you owned a majority interest.
If your new buddy pays the subsequent years taxes, you could be stuck like Siamese twins in the property for years, untill he decides to sell or refinance.
HOwever, if you pay the subsequent years taxes, you can now take the case to court and try to force a sale. I say try because the outcome is not guaranteed. The results may vary, Parish to Parish (La calls their counties parishes).
My advice? Avoid all this nonsense and head west, next door to Texas or north to Oklahoma!
In Texas, within as little as 6 months after the auction, you will usually get the property, All of it, free and clear of any and all mortgages, liens and encumbrances if the owner doesn't redeem. In fact, you can even charge him rent during the redemption period!
In Oklahoma, there is No Bidding! You get the lien just for the amount of back taxes and if after 2 years the owner does not redeem, you get the property, yes, all of it, free and clear!
We just picked up a SFH in decent shape in Tulsa, OK, worth about $30,000 for $843 in back taxes. No fuss, no bother!
Thank you so much for your valuable information. It explains alot. While I love Texas, Mississippi is a little closer. How are Tax Liens handled there. I would love to own a piece of waterfront property for pennies one day in the future.