Selling Rental Property

[Deleted member 129277]

Jurisdiction

Louisiana

I've lost 3 potential buyers for my apartment building that has 7 apts. During the COVID-19 pandemic doesn't seem like a good time to sell.It seems hard for buyers to get the financing they need. I has also taken 2 1/2 months to get over the virus. I'm 72 but I hung in there. I found out recently that there would be an online tax sale of properties this coming Aug. 26th. My family has a history of paying the property tax for 3 properties for 45 years. That should count for something. I inherited the properties and I'm trying to sell. I have no social security due to being short some credits. I need the money to live on. Though Louisiana gives 3 years to catch up on taxes and I only owe for 1 year (a little over $2,000.00) I really wouldn't want to have to pay taxes on what I have currently left to live on (only several thousand dollars and my budget is approximately 1 thousand per month) until I can get the property sold. Do you think I could get some kind of extension or delay on payment? I have already spent approximately $20,000.00 in repairs to property. I'm not about to let someone get their paws on the property over a lousy $2,000.00 in taxes. Some states have a moratorium on property tax due to the pandemic, but I can't find any information about Louisiana. It should be noted that I have Independent Executrix on the properties that I inherited. Shouldn't that also count for something?

 

[adjusterjack]

Do you think I could get some kind of extension or delay on payment?

Ask your taxing authority.

The only thing that counts for anything is getting the taxes paid or face the consequences of not paying them.

Pay the tax or drop the price enough so that a cash investor will snap it up quickly.

 

[welkin]

I've lost 3 potential buyers for my apartment building that has 7 apts. During the COVID-19 pandemic doesn't seem like a good time to sell.It seems hard for buyers to get the financing they need. I has also taken 2 1/2 months to get over the virus. I'm 72 but I hung in there. I found out recently that there would be an online tax sale of properties this coming Aug. 26th. My family has a history of paying the property tax for 3 properties for 45 years. That should count for something. I inherited the properties and I'm trying to sell. I have no social security due to being short some credits. I need the money to live on. Though Louisiana gives 3 years to catch up on taxes and I only owe for 1 year (a little over $2,000.00) I really wouldn't want to have to pay taxes on what I have currently left to live on (only several thousand dollars and my budget is approximately 1 thousand per month) until I can get the property sold. Do you think I could get some kind of extension or delay on payment? I have already spent approximately $20,000.00 in repairs to property. I'm not about to let someone get their paws on the property over a lousy $2,000.00 in taxes. Some states have a moratorium on property tax due to the pandemic, but I can't find any information about Louisiana. It should be noted that I have Independent Executrix on the properties that I inherited. Shouldn't that also count for something?

I don't think you understand Louisiana tax sales. When you are delinquent on your taxes for one year and a tax sale takes place, you do not lose the property. What is sold at auction is a tax deed or tax sale certificate. You have the right to redeem the certificate within three years of the sale. You pay the person that bought the certificate principal and interest on what they paid for the certificate. So keep trying to sell the properties and you will redeem the certificates from the sale proceeds.

Each step is explained in more detail below, but generally speaking, tax sales occur in 4 steps:

1. The parish tax collector (usually the sheriff) publishes the property for sale;
2. The tax collector sells the property for a flat fee amount at a public "auction";
3. For three years, the original owner can redeem the property by paying the purchaser the amount paid, a penalty of 5%, 1% interest per month;
4. After three years, the purchaser can file a lawsuit to "quiet the title".

You will not get any exemption or extension on the process. It is set in stone.

What does having an executrix for an estate you inherited from have anything to do with paying the taxes on property you now own?

 

[Deleted member 129277]

I don't think you understand Louisiana tax sales. When you are delinquent on your taxes for one year and a tax sale takes place, you do not lose the property. What is sold at auction is a tax deed or tax sale certificate. You have the right to redeem the certificate within three years of the sale. You pay the person that bought the certificate principal and interest on what they paid for the certificate. So keep trying to sell the properties and you will redeem the certificates from the sale proceeds.


You will not get any exemption or extension on the process. It is set in stone.

What does having an executrix for an estate you inherited from have anything to do with paying the taxes on property you now own?

In reply to your question since the succession is still open until I sell all the properties and then close it no one has a right to sell anything related to the properties except me. The properties are still listed as being owned by my parents and once each is sold it then changes. That is correct because I sold one already and that's how it was handled by the title company. Now maybe you understand my concern about any outside interference concerning the properties. You're welcome to comment.

 

[welkin]

Is the property listed for tax sale in August owned by you or the estate?

 

[adjusterjack]

In reply to your question since the succession is still open until I sell all the properties and then close it no one has a right to sell anything related to the properties except me.

I think you would be wrong about that with regard to unpaid property taxes. The taxing authority has a statutory right to sell the tax lien regardless of who owns the property or what stage of probate it's in.

 

[Deleted member 129277]

Is the property listed for tax sale in August owned by you or the estate?

Sorry to have wasted your time. I got an offer of assistance from a friend. That solves my problem for sure.

 

[Deleted member 129277]

I think you would be wrong about that with regard to unpaid property taxes. The taxing authority has a statutory right to sell the tax lien regardless of who owns the property or what stage of probate it's in.

Thanks for your response. I got lucky today. Got offer of assistance from a friend. That solves my problem.