Tax Sale property and SBA loan ?

[Will Sifert]

Hi, I started purchasing tax liens at tax sales in Louisiana in 2010. I now have a few properties that have gone over the allotted 3-5 year redemptive period. I've followed all of the statues, sent notice etc.. I have one house that happens to have a SBA loan. I included the SBA in all notices that were sent, they signed for the certified mail but did not respond. I have a default judgement set up for next month for the property and the previous owner nor SBA have responded or opposed the lawsuit in anyway. 

Louisiana statues say that the mortgage will be terminated once I receive the default judgement next month and I should own the property outright. Since this is the first suit I am going through to quiet title on a tax sale property I am still not feeling 100% confident that this will go through. I know the SBA is a quasi government entity and wonder if they will find a way to appeal or annual my judgement after the fact? 

Does anyone here have any experience with SBA loans and tax sales? 

FYI, the owner of the house received  the SBA loan after hurricane Katrina, during which time they gave out thousands of disaster loans to home owners (nothing to do with businesses). The house has been vacant for at least 5 years and I am 100% the current owners haven't paid their mortgage since that time. Apparently the SBA is not in any hurry to foreclose on people.

From the Louisiana statutes:

E. The filing of the affidavit provided in Subsection D of this Section with the recorder of mortgages of the parish in which the property is located shall operate as a cancellation, termination, release, or erasure of record of all statutory impositions due and owing to the political subdivision prior to the recordation of the tax sale certificate, and of all interests, liens, mortgages, privileges, and other encumbrances recorded against the property and listed in the affidavit. Governmental liens and statutory impositions due to other political subdivisions other than the selling political subdivision shall not be canceled or terminated. The recorder of mortgages shall index the affidavit only under the name of the tax debtor and current owner.

F. Upon filing of the affidavit under Subsection D of this Section, the recorder of mortgages and recorder of conveyances shall treat as canceled, terminated, released, or erased, as applicable, all the liens, privileges, mortgages, interests, or other encumbrances canceled, terminated, released, or erased under Subsection E of this Section, only insofar as they affect the property.