new orleans tax sale

NEW ORLEANS, LA � New Orleans held an online tax sale starting Monday at 8am for properties specifically targeting pre-Katrina delinquencies for the tax years 2002, 2003, 2004 and 2005, but, some are very suspicious about the entire process.



One person who prefers to be anonymous told Bayoubuzz that four different computers from four different locations were told the tax sale was not open. However, during that time, this source said that the sale was taking place since suddenly they were able to get online and were told the properties in question had been sold.



"It really raises the question as to whether there was something going on", said the source.



The source also said that one person within their network of possible buyers was using a Apple computer but could not even access the website at neworleanstaxsale.com.



The final online tax sale will take place February 2005.

The monies collected go to fund tax recipient agencies, such as the Sewerage & Water Board, the School and the Levy Boards.



According to a city press release, the Internet tax sale method was supposed to allow "purchasers from anywhere the opportunity to view property information (location, values, tax history, etc.), satellite imagery of the tax sale eligible properties, as well as all online registration and purchasing of parcels from any computer station. The website address is www.neworleanstaxsale.com. Individuals desiring to participate, with neither computer, nor Internet access, will be invited to the courthouse lobby located at 421 Loyola Avenue, where computers will be available to the public throughout the times of the sale.



Property owners whose properties are eligible for sale were sent, in addition to their annual tax bills, two additional delinquency notices, one via first class mail and one via certified mail, at the address provided by the property owners to his assessor. Additionally, general notifications and tax sale advertisements listing all sale eligible properties were published in the Times-Picayune on October 24, October 25th, November 2nd and November 23rd. If your property is eligible for sale, you can pay overdue taxes and remove your property from the sale by calling 1-866-493-7407 between 8 a.m. - 4:30 p.m. The press release said "for technical support or questions regarding the tax sale please call 1-866-493-7408 to speak to our Customer Service Representatives. Someone will be able to assist you between the hours of 8 a.m. - 5 p.m., prior to the sale, and 8 a.m. - 8 p.m., during the sale. All times are Central Standard.



However, for those individuals who participated or who tried to participate starting at 8am in the morning, all they encountered was frustration and now suspicion. One individual was able to purchase a property online using this method.


New Orleans officials announced they will hold the city's first online tax sale Monday at 8 a.m. The sale is scheduled to wrap up Wednesday at 8 p.m. unless the roughly 2,500 properties on the list are sold before that.

Tax sales are used as a means for public entities in Louisiana to collect property taxes that are deemed delinquent. To purchase a property at a tax sale, a buyer must pay all delinquent taxes, plus penalties and interest.

Officials in Mayor Ray Nagin's administration said the city is only selling properties that have tax delinquencies dating to 2005 or earlier. In other words, properties that did not have outstanding taxes at the time of Hurricane Katrina will not be sold.


Those who wish to participate in the online auction must register first at www.neworleanstaxsale.com. Visitors to that Web site may search the database for tax-delinquent properties immediately.

A tax sale resembles an auction, but there is no bidding as such. The first person who indicates they'll pay the taxes, penalties and interest on a particular property is the winning bidder.

However, buyers do not actually own the properties they purchase -- not immediately, anyway. In most cases, the tax-delinquent owner has three years to "redeem" the property by repaying the purchaser the taxes, penalties and interest, plus a 5 percent penalty and 1 percent interest for each month that has passed since the tax sale.

If the property has been legally determined to be blighted, the three-year redemption period is shortened to 18 months.

If the property is not redeemed by the deadline, the buyer must file legal paperwork to claim title to the property.

Those who register for the sale can "flag" properties they're interested in buying before the sale begins, according to the Web site. The site has answers to many other questions about tax sales, such as an explanation of the responsibilities of those who purchase property at tax sales.

A second tax sale will be held Dec. 12, officials in the Nagin administration said.

Properties that do not sell during the two tax sales will be adjudicated to the city.