New Orleans Tax Sale Resumes Wednesday, Dec.12

# When is the sale final? When will the property become mine?

* The sale is final when the Tax Sale deed is recorded in the Orleans Parish Office of Mortgages and Conveyances. Full ownership of the property will not occur until three years from the date of the filing of the Tax Sale Deed, or 18 months if the property is blighted or abandoned.

# Do I have to notify the former owner that I purchased the property?

* Yes. You must notify the former owner of your purchase and of the owner's right to redeem within thirty (30) days after the tax sale deed is recorded. La. R.S. 47:2183(C).

# Am I responsible for paying the property taxes?

* Yes. Unless and until the property is redeemed, the buyer is responsible for paying any overdue taxes as well as the subsequent yearly tax assessments.

* Failure to pay taxes may result in the property being sold at a later tax sale.

# If I pay the overdue and/or current taxes, will I get my money back if the property is redeemed?

* Yes. “The person redeeming property, in whole or in part, shall pay all taxes assessed upon the property redeemed subsequent to the tax sale with interest at the rate of one percent per month until redeemed.” La. R.S. 47:2222(A).

# What expenses am I responsible for other than paying overdue and current taxes?

* In general, tax sale purchasers have the same responsibilities as other property owners and should act accordingly.

# What happens if the property still has a mortgage? Do I take over the mortgage?

* The buyer is not responsible for any mortgage on the property.

* The mortgagee has been given notice that the property has overdue taxes and has the right to redeem the property.

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What happens when the previous owner claims the property within the three-year period?

• To redeem the property, the former owner must pay the purchase price (including
  costs), a five percent (5%) penalty thereon, and interest at the rate of one per
  cent (1%) per month until redeemed.
• If you paid overdue and/or current taxes, the former owner “shall pay all taxes
  assessed upon the property redeemed subsequent to the tax sale with interest at
  the rate of one percent per month until redeemed.” La. R.S. 47:2222(A).
• If you made repairs or improvements, you may be entitled to the value of the improvements
  and/or the cost of the repairs. La. R.S. 47:2222(D) and 2222.1.
• You should obtain legal advice as to your rights and obligations as a tax sale purchaser.

the City of New Orleans will hold a second sale from 8 a.m. until 8 p.m. Wednesday.

The
sale will include 300 properties located within the City’s 17 target
recovery areas. It focuses on pre-Katrina delinquencies for the tax
years 2002, 2003, 2004 and 2005, with the final due date being February
2005.”

In the first property tax sale held last month, approximately four million dollars of properties were sold.  At
that time, Bayoubuzz and its Publisher, attorney, Stephen Sabludowsky,
who handles Internet identified and recommended areas of the site that
could and should be improved.  Regardless of any
shortcomings, a tremendous amount of property was indeed sold online in
November which volume would never take place in the confines of a Court
House.  The Internet sale also allowed buyers
from locations throughout the nation to select their real property
investments with their computers without being inside the Court House.    

According to the statement from Mayor Nagin’s Office, “Money collected from the sale of properties goes to fund tax recipient agencies, such as the Sewerage & Water Board, the Orleans Parish Schools and the Levy Boards.

On
November 26-28 the City held its first internet-based tax sale,
offering 2,215 properties.  The sale generated response from
individuals from 19 states, who purchasing 1,944.