Sale typeWhat you actually buy. A lien sale gives you a claim on the property and the owner keeps it for now; a deed sale transfers the property itself. A redeemable deed transfers ownership but still gives the former owner time to pay you back. See the full glossary for more terms.
lien
La. R.S. 47:2155
Interest / penaltyWhat you earn when the owner redeems. Interest is a rate paid over time; a penalty is usually a one-time percentage of the tax or redemption amount. A rate that is bid down during the auction is still interest. See the full glossary for more terms.
5% penalty plus interest at the winning bid rate (max 1%/mo, noncompounding; floor 0.7%/mo)
La. R.S. 47:2153(A); La. R.S. 47:2154(D)
RedemptionHow long the former owner has to repay the debt and keep the property after the sale. Your money stays tied up until this window closes, so a long period can mean a multi-year wait on a lien. See the full glossary for more terms.
3 years (enforcement only after 3 years from recordation)
La. R.S. 47:2266.1(A)(1)
Bid methodHow the winner is chosen: bidding the interest rate down, bidding a premium above the amount owed, a random or rotating draw, or simply buying at the minimum bid. See the full glossary for more terms.
competitive bid-down of the monthly interest rate (max 1%/mo down to floor 0.7%/mo)
La. R.S. 47:2154(D)
Sale timingWhen sales are typically held. Many counties publish sale lists only a few weeks ahead, and some sell continuously or on their own schedule. See the full glossary for more terms.
HybridWhether the sale is online, in person, by sealed bid, or a mix. The format decides how you register and whether you can react to other bids. See the full glossary for more terms.
1.Watch for the tax collector's advertisement of the tax lien for sale by public auction, which must be made on or before May first of the year following the year in which the taxes were assessed, or as soon thereafter as possible (La. R.S. 47:2154(A)(1))
2.Attend or log in to the auction: it is held on any weekday with bidding opening not earlier than 8:00 a.m. and closing no later than 8:00 p.m., and if it uses an online or electronic bidding process over multiple days, bids may be placed at any time on any tax lien on which bidding has not closed, as long as all bidding closes on a weekday within those hours (La. R.S. 47:2154(B))
3.Bid the price: the auction price is the face value of the tax lien certificate, and the competitive bidding is on the monthly rate at which interest will accrue after issuance, with bidders reducing the rate in increments of one-tenth of one percent or an integral multiple; the lowest rate wins and no bid may go below seven-tenths of one percent per month (La. R.S. 47:2154(C)-(D))
4.Pay the winning amount to the tax collector by cash, cashier's check, certified check, money order, credit card, or wire transfer, or another payment method (La. R.S. 47:2155(A))
5.Receive the tax lien certificate: no later than thirty days after the auction the tax collector issues and files in the parish mortgage records a tax lien certificate in favor of the winning bidder (or, if there is no bidder, in favor of the political subdivision) and delivers a certified copy to the winning bidder (La. R.S. 47:2154(E)(1))
6.Collect interest or be paid off: interest accrues on the face value at the winning bid's monthly rate on a noncompounding basis, and the owner or any other person may extinguish the lien by paying the termination price (La. R.S. 47:2154(F); La. R.S. 47:2155(A))
7.If the lien is not extinguished, enforce it by an action to enforce the tax lien under La. R.S. 47:2266.1, which must be brought no later than seven years from the date the tax lien certificate is recorded (La. R.S. 47:2155(C)(1))
RegistrationSigning up as a bidder before the sale. Counties set the deadlines and paperwork, which may include an application, identification, and a no-delinquent-taxes statement. See the full glossary for more terms.
Required: UnknownUnknown
Not verified from a source yet.
DepositMoney you must post before or at the sale, often a flat amount or a percentage of your bid. It is usually applied to the purchase price if you win and is often non-refundable if you fail to pay. See the full glossary for more terms.
Required: UnknownUnknown
Not verified from a source yet.
FormsPaperwork a county may collect before you can bid, such as a bidder ID card or a W-9 for tax reporting. See the full glossary for more terms.
Bidder ID card: UnknownW-9: Unknown
EligibilityRules about who may bid. Some counties restrict non-residents or bar anyone who owes delinquent taxes from participating. See the full glossary for more terms.
PaymentHow and when you must pay after winning. Certified or cleared funds are common and personal checks usually are not; missing the deadline typically forfeits your deposit. See the full glossary for more terms.