Louisiana Tax Lien - Legal obligation to maintain property

[Sean ONeill]

I invested in tax liens in a Louisiana parish two years ago, and today I received a certified letter from an attorney representing the city.   The letter indicated that the property is "unsafe and dangerous under the provision of the City's building code and the Code of Ordinances.   Due to the circumstances that surrounds the structure, the city is seeking to demolish the property.   The letter states the importance to seek legal representation immediately.  

My stance/understanding is that I do not have a legal obligation to maintain the property, nor do I am required to fund the demolishing of the structure.   I do not have an ownership interest in the property.... Am I missing something?   Is this merely a tactic to scare me into financing something that I am not legally obligated?

Should I seek council regarding this matter or send correspondence with the City/Attorney surrounding my limited interest in this property.

Thanks for your assistance with this matter.

[Kimberly Jones]

The City is required to notify the lienholders of the demolition. You are not required to maintain the property, is is simply your right to be informed. Technically, if you take control of the property, you would have to pay for the demo because it is part of the tax bill. You would also have to pay any other outstanding taxes. If you do not care about the money you have into it thus far, you do not need to worry. Just sit back and wait to see if anyone ever steps up to pay.

Did you have anyone to guide you when you originally bought the tax notes? Are you aware of the horrors of tax note investing in Orleans Parish? (I am assuming you bought in Orleans, but your definition of New Orleans may include Jefferson)

Do you have any idea what the real condition is? The City has been known to demo houses that could easily be saved and at the same time, they leave some of the worst untouched. If this property is still able to be saved, you may want to get proactive. You can certainly take control of the property at this point. There are plenty of us out here rehabbing these properties. If you are dealt a decent hand and play your cards right, you could make some money. Even if you do not personally want to rehab it, you can always sell it to one of us. Get the money you have invested PLUS some on the flip. Beats being stuck with an empty lot that nobody wants.

What zip code is it in?