In this post, we will discuss Louisiana Tax Sales Explained, A Video posted on YouTube on May 17, 2020.
Louisiana tax sales are technically run as a tax lien state even though they are listed as a deed state. For this reason we refer to them as a Hybrid State. The “Tax Sale Deed” that is issued to a successful bidder at the tax title sale, is not a deed, per se, but only a lien.
One of the cool things about LOUISIANA is that that it has a combination of interest and penalty like Florida. The penalty is 5% on top of the interest. This means that even though they use a Bid Down The Interest method on their auctions, you’re still going to be guaranteed a minimum of 5%. The owner has 3 years to redeem.
More Info on Louisiana Tax Sales:
If the lien is not paid within the 3-year redemption period, the property will revert to the lienholder, however, in order to obtain a deed to the property, legal notices must be given. In Louisiana, You will need an attorney to give the proper notices and produce a proper deed to the property.
Their sales are wholly held between January and April and they do not have any over-the-counter sales. Now the redemption period can be a little daunting, and of course you have “quiet the title” if you get the property as a result of a failed redemption however I generally like Louisiana. There are a few counties that are online but most of them are in person and with all that info I give Louisiana a 3/5.
Now what I’d like to do is give you guys a worksheet for the state of Louisiana. Each one of the worksheets is several pages. Each one has all the information I just mentioned plus my personal notes for each state and then links to the states laws, other applicable websites, and links to every single County and in some cases municipality as in some of the northeastern states who run their auctions by city instead of by County. Finally each worksheet has got a map of the state showing the counties for your convenience.
Interested in Tax Sales in Another State?
Tax Sales investing is a niche that has the potential to be insanely profitable.
However, most investors do not have a deep understanding of this investing strategy.
Every state has a unique set of rules and regulations. There are some basic rules you need to understand as to how the process works. Generally, states will fall into one of three categories:
- Tax Lien States
- Tax Deed States
- Hybrid States
Hybrids are states who conduct their tax sales by selling tax deeds with a caveat. The deeds have a redemption period much like a tax lien certificate.
This map provides links to information for every state as well as Washington DC.