PURCHASING

When you have identified the vacant historic house you'd like to buy and renovate, the Operation Comeback staff will work with you to devise a plan for acquiring it. Our clients have had success using the following tactics:

Purchase Through a Realtor or the Owner

Buying an old house to renovate is especially easy if the owner has listed it with a realtor – it means he or she has already cleared the hurdle of deciding to sell the property, and has established a price that can be the subject of negotiations. If the house isn't listed with an agent, then the Operation Comeback staff can help you determine who owns it and can approach him or her about selling the property. But if the owner can't be found, or if liens or other legal encumbrances exceed the value of the property, outright purchase may not be an option and another course of action must be pursued.

Purchase at a Tax Sale

When real estate taxes go unpaid for a period of time, the City of New Orleans holds "tax sales" at which interested buyers can pay off the taxes owed on a property and obtain a tax deed. After the "redemption period" has elapsed (18 months for a "blighted" property, 3 years for others), the holder of the tax deed can file suit to gain title to the property. Be aware, however, that "tax sales" eliminate tax debts only and that other debts such as mortgages, liens, etc. may remain.

Purchase at a Foreclosure Auction

Mortgage holders and other creditors sometimes force the sale of a property at auction in order to recover unpaid debts. In New Orleans, auctions are held each Thursday in the lobby of the Civil District Courts building at the corner of Poydras and Loyola. Notices advertising upcoming auctions run in the classified section of the Times-Picayune each Monday, and are also posted on the Civil Sheriff's web site.

Bidding on a foreclosure property opens at 2/3 of its appraised value, a figure posted on the Civil Sheriff's web site the day before the auction. The successful bidder must present cash or a certified check equal to 10% of the winning bid, and must pay the balance within 30 days. The successful bid satisfies the debt that resulted in the foreclosure, but unpaid taxes, health liens and other encumbrances may be owed.

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