Can I lose my house or how do I get a 17% return?
Issues with tax sales are popping up with more regularity. So what is a tax sale? In the event that your taxes are not paid by a certain date, the Sheriff’s Office (or in New Orleans the Bureau of Treasury) will advertise your property for sale to the general public to collect the unpaid taxes. On the advertised date, the property will be subjected to a tax sale. If no one buys the property at the tax sale, the property will then be adjudicated to the local Parish in compliance with the laws of the State of Louisiana. It is important to remember that any property that has been sold for non-payment of taxes or adjudicated to the parish can be redeemed within a limited period of time. It is equally important to be advised that after a certain period of time, a property owner can actually lose his property and thus his entire investment for failure to redeem his property from a tax sale or adjudication to the Parish.
I have yet to see the excuse of “I didn’t get my tax bill” succeed at least from the standpoint of penalties and interest. So it is the responsibility of the property owner to pay all taxes, penalties, and redemption costs to the Sheriff’s Office.
Under Louisiana law, a tax deed buyer can earn as much as 17% interest on their investment for the first year. This has become big business for many people and corporations.