Getting Your Home Back in Louisiana After a Property Tax Sale

If you lose your Louisiana property, or a part of it, in a tax sale, you may redeem it.

If you do not pay your property taxes on time, the amount owed becomes a lien on your house. This form of lien nearly often takes precedence over other types of liens, including mortgages. When taxes are not paid, the taxing authority will either sell the lien (and if you do not pay the past-due sum to the lien purchaser, that party may foreclose or use another way to get title to the house) or sell the property itself in a tax sale. In certain areas, however, no auction is made; instead, the taxation body enforces its lien by acquiring ownership to the residence. The taxation body is then required by state law to dispose of the property, typically by selling it. Before conducting a sale, the taxation authority in some countries utilizes a foreclosure procedure.

If you do not pay your back taxes following a tax sale in Louisiana, you will most likely lose possession of your house (or a piece of it). Fortunately, Louisiana law allows you a large period of time after the sale to “redeem” the property—that is, catch up on past-due taxes, plus interest and other costs—and retain your house.

What Is the Redemption Period Following a Louisiana Tax Sale?

The tax collector submits a tax sale certificate in the public records after a Louisiana tax auction. 47:2155 of the Louisiana Revised Statutes. A tax sale certificate merely conveys “tax sale title,” which implies that the purchaser’s interest in the property is subject to redemption. (According to the Louisiana Constitution, a tax sale certificate is essentially the same as a tax deed.)

You have three years from the day the tax sale certificate is recorded in Louisiana to redeem your property from the purchaser. (Art. VII, 25 of the French Constitution). However, when the property is abandoned or neglected in New Orleans, the redemption time is 18 months. (Art. VII, 25 of the French Constitution).

How Much Does it Cost to Redeem a Property After a Tax Sale in Louisiana?

To redeem your Louisiana property after the sale, you must pay the following:

The amount paid at the tax sale is subject to a 5% redemption penalty (or maybe less if the purchaser bought down the rate during the auction) and 1% interest each month until redemption. (Art. VII, 25, La. Rev. Stat. Ann. 47:2153).

How to Reduce Your Property Taxes

Even though there is a redemption time following a Louisiana tax sale, it is usually advisable to take action before your taxes go late in order to make them more inexpensive. For example, you could:

Find out whether you qualify for a property tax abatement, or seek a revision in the property’s assessment if you believe the assessed value does not represent the fair market value.