With the recent buzz in New Orleans about the 2015 Adjudication Property Auction selling properties with title insurance, questions have arisen about viability of selling properties acquired in the Tax Sale Certificate method of auctioning tax delinquent properties.
While it’s true, that title insurance companies are shying away from offering title insurance coverage on properties acquired in the Tax Sale Certificate method, there still might be good reason to purchase these certificates.
First, if the certificate is redeemed you can get a good interest rate.
Second, if the certificate is not redeemed, it can possibly used as leverage against a buyer, a bank, or a seller wishing to buy, foreclose, or sell respectively.
Third, if you cannot sell the property due to lack of title insurance, depending on the situation, you may be able to clean any title issues with acquisitive prescription by holding on to the property for 10 or 30 years.
Remember to carefully calculate all risks before investing in Tax Sale Certificates. Always consult your legal advisor before acting on any of the aforementioned strategies.