An Introduction to Worst Case Scenarios when Figuring Out Who to Notice with Stephen Morel
Stephen Morel is a Louisiana attorney and the Founder and CEO of JurisDeed. Morel helped rewrite the tax sale code for the state of Louisiana, which has some of the oldest case law in America and is the only Civil Law jurisdiction in the nation. Those laws affect how tax sale notifications are done in Louisiana.
Understanding the Unique Louisiana Statutes
Louisiana law provides that a legal guardian is appointed by default for children when their parents die. That applies even if the children happen to be adults. Another statute says that if a person is 23 years old or younger, they cannot be disinherited. Even if they are not mentioned in a document like a Last Will and Testament, they must be noticed by a tax sale investor who intends to foreclose because they may still have an ownership interest in the property.
Finding Local Help and Legal Insight is Important to Success
Those statutes can create unique challenges for investors during the notification process, especially if they are unfamiliar with Louisiana Civil Law. Therefore, consulting a local tax sales attorney familiar with Louisiana’s unusual laws may be helpful to assist with due diligence and the notification process. As is true in many states, the cost of hiring an attorney – even if only for an hour or two of initial consultation – can help investors understand the legal landscape and avoid more expensive problems.
There are Solutions for Cost Effective Due Diligence
Nobody entitled to be notified of a delinquent lien or foreclosure can have their rights terminated without being adequately informed during the redemption period. However, the redemption period in Bayou State is a full three years, which affords investors extra time for due diligence and notification. Therefore, many investors find that doing their due diligence is the most effective approach before acquiring a property deed through foreclosure.
Recent Changes in Louisiana’s Notification Rules
A change in notification rules went into effect in 2009, giving investors more leeway regarding notification. The change intended to help fix a broken system where tax sales were constantly being set aside due to incomplete notification. Under the old system, the tax sale was set aside if any person interested in the property wasn’t notified. However, under the new rules, those who were notified and didn’t redeem lost their ability to challenge the foreclosure. The only persons who can proceed with a challenge are those who weren’t notified. For example, if there were six interested parties and only one wasn’t adequately informed, the other five have their interests terminated. Then, the investor can go to court and attempt to win a challenge from the remaining party to proceed with foreclosure. Investors can also do their notifications in Louisiana. Tax collectors sometimes don’t do as thorough a job as a motivated investor may do when it comes to identifying who to notify and where to send notices. So, properly notifying can be an advantage and help you avoid problems.
Listen to the full in-depth podcast interview to learn more about the notification process in Louisiana, JurisDeed, and how it can be helpful.
