Complex Louisiana Tax Deed Question
I am relatively new to tax deeds and have purchased a tax deed for a property locally. The deed is for a property on which the owner named in the sale is deceased, the property was sold (by the heirs, a year after the lien was created, but years before the tax sale) to an investor (who did not know about the past due property taxes when he bought), who then built a four-plex of townhouses and sold each unit individually. So, now there are four title holders to what was the original property that I bought the tax deed for. What are my options in this case?
Just to clear up:
2003 Owner dies
2004 Lien created
2004 Heirs sell property
2005 Property developed by new owner, subdivides original property
2006 Owner sells all 4 properties
2007 I buy tax deed for original property
How messy is this situation?
Louisiana has a 3yr right of redemption period, meaning the owners can pay you 12% interest + a 5% penalty and redeem the tax deed.
You can sit quiet and earn a nice interest rate. If nobody knocks on your door and offers to redeem it, after 3yrs the property is yours.
Sounds like the title insurance company was negligent- how could they miss a tax lien? They will have to cover the loss asuming your deed is valid and not redeemed in time.
I would sit tight and wait for the lien to mature, then claim the properties and let the title company(ies) sort out the mess.
Chris
Does that mean EACH of the four owners has to pay the 5% penalty plus 1% per month to redeem their portion?
Also, since there is only the deceased as the R/O of the property, would the new owners even get notices of the sale and do I need to notify them each individually?
I guess I could also try to get 4 QCDs and claim the property now.