New Orleans to Conduct First Online Auction Selling Delinquent Assets

The City of New Orleans is planning its first online auction to sell 1,786 adjudicated properties.

A property becomes adjudicated when its property taxes have not been paid, meaning the property is delinquent. The City of New Orleans only auctions properties five years after they were not sold at a tax sale.

The city has started to list the adjudicated properties for sale online. The auctions will take place in July due to a mandatory 90-day notification period that is given to each homeowner notifying them that taxes are due on their property.

To participate in an auction, an investor has to make a $650 deposit on each property they want to purchase. This action starts the prerequisite legal research and notification process that informs the homeowner their property will be sold in 90 days if all the delinquent taxes and fees are not paid. If the homeowner pays these taxes, each depositor obtains a refund and the sale is stopped.

However, if the homeowner fails to pay the taxes owed to the city, an auction date is set. A property's minimum starting price in each auction will include the cost of the research and legal notification, closing costs and the cost of title insurance. Then, the highest bid acquires the property, while losing auction bidders will get their initial deposit back. Additionally, winning bidders may be eligible to obtain title insurance from First American Title Insurance Co. or another provider.

"These auctions will help spur new development, reduce blight and strengthen communities across New Orleans," said Mayor Mitch Landrieu. "As we continue to rebuild New Orleans…this is another major step in reviving economic activity across our city. The city will not only collect important revenue, but we'll be able to encourage new construction and new development in many neighborhoods throughout New Orleans."

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