Can someone give me info on what to do after you've purchased a TAX DEED property in Louisiana.?

Question

Facts to consider:
It's in Orleans Parish.
It's gutted out and abandoned damaged 52% by Katrina.
Taxes not paid since 2004.
Owner not likely to redeem.
I paid the taxes and will receive a Tax Deed in 2 weeks.
I am looking for a book or information specifically on what to do after the property is purchased. I know that I have to contact the owner. If there is a form to inform him of his rights I need that. I also want to know what improvements to the home are refundable if the owner redeems. I knwo I typed a lot, but this is my first home and I want to do this right. PLEASE, only serious responses!

The house was purchased from www.neworleanstaxsale.com

It reads that the owner will have to pay for the taxes, penalties, interest, and improvements made to the property. The property is gitted and overrun by weeds and branches. It's a brick house so it is standing strong.

According to the FAQs on the site where I bought the house http://www.neworleanstaxsale.com/About.aspx
If I purchase a property, do I receive full ownership rights?
No. The former owner may redeem the property at any time within three (3) years from the date of recordation of the tax sale deed. If the property is blighted or abandoned, the redemption period is eighteen (18) months.
Can I make repairs and improvements to the property? Will I be repaid if the property is redeemed?
The purchaser may make repairs and improvement and is entitled to receive the value of any improvements made to the property. La. R.S. 47:2222(D).
You should keep written receipts to prove the value of improvements.
The former owner may dispute the value of improvements.
You should obtain legal advice before making repairs and improvements to any property purchased at a tax sale.

So I know about my rights and the owner's rights but the legal process is what I cannot find any information on.

Answer 1

Wow.. this took some research. Ok, here's the deal,
I called the Conveyance office in Orleans Parish:
http://www.orleanscdc.com/regcon.shtm

The Tax Dead you bought is basically an investment in two ways:
. You now "own" the taxes on the property. The person who owns the house has Three Years to redeem the property. To redeem is, they must come back and pay all the taxes, including your taxes with interest and penalties (hence the "return" you would make on the tax deed if they come back). If they do not come back, you can then petition the court to take the property.

I asked the lady if there was a way to speed it up if you "knew" the original owner wasn't going to pay. She wasn't totally sure but she said she didn't believe that was possible.

Given the nature of Louisiana Law (and the Napoleanic code by which it is based) it heavily favors the families and owners of things. If you do believe you can speed it up, I'd suggest contacting a real estate tax attorney in Orleans Parish as they will at least know the system. Not sure if a Real Estate tax lawyer is the right one or not but my gut says they either are or could point you to who is.

That said, from what I got from the Conveyance Office, there is no contacting of the owner or indication of their rights that you need to do. You are simply an investor at this time. 3 years from now, you have the right to ask a Judge to award you the property. I think it's that straight forward. Anything outside of that... talke to an Orleans Parish attorney.

Also, feel free to call the conveyance office with your specifics. I called saying I had "won" a Tax Deed but didn't press too hard because I don't have one.

Hope that helps.

Answer 2

This isn't going to be 'your home' until the redemption period expires, which, in Louisiana, is an unbelievable three years.

If you make improvements to this home, they belong to the owner if he should choose to redeem.

You've made the error of thinking that buying a tax deed is buying a property. It's not. It's an investment. The owner, should he choose to redeem, is required to pay the rate of interest determined by law to you. However, if you repair this home to good standing, the owner can redeem and pay you NOTHING except the interest.

How did you manage to get involved in this ?

Answer 3

ra ra I think you misunderstood something.

You have NOT bought a house. You have no rights to the house.

You bought a DEBT. You can now collect on that debt, with interest, but you do not own their house. They still own the house.

No improvements will be refundable because you have NO RIGHT to live in the property at this time.

You have to wait a few years before you can even petition to take over ownership.

Answer 4

I do not have an answer, but I have a question. How did you go about making this purchase, and was it a good deal?