Many people ask what are the benefits of buying a Louisiana sale deed/certificate? Here are two big ones!
When a homeowner fails to pay their property taxes, the local taxing authority can then place a lien on the property and it will then be listed publicly for auction for what is called a “tax deed”.
One of the unseen benefits is that money that they gain from the tax sale then goes back into the community so it can use it, putting it towards paying there current budgets.
But what about the benefit to the one who purchased the Louisiana sale deed/certificate?
Benefit #1 – Return on Investment
Purchasing a Louisiana tax sale deed/certificate in Louisiana gives the investor the rights to the tax-related debt associated with a property, plus interest. In Louisiana you can earn 5% penalty interest and interest at 1% per month (12% annually) on your investment with the potential of being able to acquire ownership of the property.
The holder of the certificate collects interest on the tax debt until it is paid in full. In order to satisfy the tax debt, the taxpayer has to pay the outstanding debt plus interest during the redemption period.
Benefit #2 – Gaining Property Ownership
The Louisiana taxing authority gives the property owner a certain amount of time to pay the tax-lien certificate, this is called the redemption period. If the debt is not satisfied, the individual who purchased the Tax Sale Deed/Certificate receives the deed on the property. As a result, the investor can become the owner of a property at a fraction of the market value of the home.
What Are the Risks?
There are certain risks that the investor needs to be aware of. Be diligent, the property could be worth far less that the person who purchased the Tax Sale Deed/Certificate thought. The homeowner who is behind on their taxes may also not maintain the property properly and may result in expensive repairs.
That’s where Louisiana Tax Sale Assets can help! Contact us today! With many years of experience, our team of experts in Louisiana tax sales have handled thousands of transactions involving millions of dollars of transferred Louisiana tax sale assets.