Licensed Louisiana Realtor
504-231-2004
3rd Mar 2015 | by: Chris Smith

The City of New Orleans is getting ready to start a pioneering effort to auction off 3,000 tax-adjudicated properties this summer through a first ever online auction sale. The online auction of these properties will in hope start a massive reinvestment into neighborhoods across the city.

 

Properties become adjudicated to the City when the property taxes haven’t been paid and the City is unable to sell the properties at a tax sale. Only properties with a five year time lapse from the attempted tax sale will be eligible for the online auction.

 

The online auction process of these properties got kick started by urban planners and City Council members calling for a better adjudicated-auction system (previously they were done in person and only obtained a small number of hardcore investors). The online auction will help spear growth in much needed areas and help strengthen neighborhoods across New Orleans.

 

Real Estate Rama has quoted First Deputy Mayor & Chief Administrative Officer Andy Kopplin saying “We are making this process as fair, efficient and transparent as possible. We have already given adjudicated property owners ample time to get caught up on their delinquent taxes and will give them more notices leading up to the sales.” All adjudicated property owners have received notice of taxes owed on their property, in addition there is a legally mandated 90 day notification period once the auction process initiates. During the 90 day “due diligence” period, property owners can pay their delinquent taxes and fees to stop the sale process. After the 90 day period ends the bidding will open on the properties.

 

The first step of the online auction process begins this Friday, March 6 at noon when the properties will be listed at www.CivicSource.com and will be displayed on a map with detailed descriptions. Bidders interested in properties will have to place a refundable deposit of $650.00 per property they would like to bid on. Once the property has shown interest by bidders that begins the 90 day mandated notification period. After the 90 days expires and the property wasn’t redeemed an online auction date will be set and people that placed a deposit will be notified of the auction start date.

 

The base starting price on properties to be bid on will include: cost of the research & legal notifications, closing costs and cost of the title insurance. The main key to the auction is winners of the property auctions will get guaranteed title insurance through First American Title Company.

 

This process will be interesting how it plays out and hopefully is a great benefit to New Orleans. Anyone seeking more information should check out www.nola.gov/treasury or call 1-888-387-8027.

 

Louisiana.RealEstateRama.com & Nola.com helped as sources.

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