The purchase of a Louisiana tax lien is the easiest step of tax lien ownership. Taking a tax lien from initial purchase to a return on investment can often be a complex, time consuming, and expensive process. The laws and courts of Louisiana favor the property owner and this often means the tax lien holder has a number of steps that must be followed carefully to see a lien process through. Often, you as the lienholder are not the only tax lien “waiting” in line. This can mean that unless you are familiar with the notice process, you may not be in possession of a lien that is ready for the next steps towards resolution (getting the return on your investment).
Louisiana property tax liens are unique. Many other state auctions are a process of bidding for 100% property ownership by “bidding up” the taxes. Louisiana does a “reverse auction” on the percent of the property that can be taken after the redemption period has expired. This means that your claim could be a very weak position and that only through negotiations with the property owner directly will some resolution be made.
Buyers of tax liens seek an opportunity to purchase liens where the redemption period is short or has passed. This is an opportunity for the current lien holder to cashout and move their money into new investment opportunities.