Louisiana situation guide · Updated November 2026

Wholesaling Tax Delinquent Properties in Louisiana

Wholesaling tax delinquent properties in Louisiana means contracting to buy a home from an owner who has fallen behind on parish property taxes, then assigning that contract to a cash buyer. In New Orleans and across Orleans Parish, the deal works only when it follows Act 807 (reported as effective August 1, 2026; confirm on legis.la.gov), the state wholesaling law for one-to-four unit homes.

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The short answer

Can you wholesale a tax delinquent property in Louisiana?

Yes, you can wholesale a house with unpaid property taxes in Louisiana, but Act 807 of 2026 now governs one-to-four unit homes. Before the owner signs, you give written disclosures and a five-day right to cancel. Confirm the current text with a Louisiana attorney.

Unpaid taxes create a clock, not a closed door. The parish can sell the property at a tax sale under R.S. 47:2121 and following, and the owner generally keeps a redemption window afterward. Check current rules for the exact length. That window is your conversation starter: an owner who sells before the sale keeps the equity. Our tax delinquent list guide shows where the names come from.

Your contract is a purchase agreement with a right to assign. Because you plan to resell the rights, Act 807 treats you as a wholesaler. Read our legality overview and the assignment guide before you write the first offer, and have a Louisiana attorney review your forms.

Tax Delinquent Properties in Louisiana at a glance

Governing law	Act 807 of 2026 (R.S. 37:1448.5), one-to-four units
Tax sale law	R.S. 47:2121 et seq.; check current text
Redemption	Generally three years after the sale is recorded
Seller cancellation	At least five calendar days
Deposit	At least 1% of price, held in escrow
Local term	Parish, not county

The opportunity

Why tax delinquent houses work in New Orleans

Orleans Parish has plenty of owners who inherited a home, lost income after a storm or simply stopped opening the mail. Taxes pile up, and so do penalties and interest. Many of these owners hold real equity in neighborhoods such as Gentilly, the 7th Ward and Central City. A fast cash sale that clears the tax bill can look better to them than waiting for a sale.

Real equity

Long-term owners often owe taxes but little else, so a sale can pay the bill and still leave cash.

A clear deadline

The tax sale process gives owners a reason to act now instead of next year.

Steady buyers

Local rehabbers and landlords look for discounted houses across Orleans Parish’s older neighborhoods.

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Lead sources

Where to find tax delinquent leads in Louisiana

Parish tax rolls. Assessor and sheriff offices publish delinquent lists. Practices differ by parish, so call each one.
Tax sale notices. Published sale notices show which owners are close to losing the property. Use the pre-foreclosure and tax lead guide to organize them.
Owner lookup. Trace the owner with public records, then skip trace if mail comes back.
Absentee owners. Heirs living in other cities often ignore a tax bill. See absentee owner leads.
Driving the blocks. Overgrown lots and boarded windows often point to a tax problem. Try driving for dollars.

Your exit

Who buys tax delinquent houses in Louisiana

Cash rehabbers and small landlords are the usual buyers. They care about the title, the repair bill and how fast they can close. A buyer who sees the tax balance up front trusts you more than one who finds it at closing.

A seller who is cleared of the tax debt at closing is the happiest seller. Use an investor-friendly title company that can pay the taxes from proceeds, and look at title insurance for the buyer.

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Step by step

How to start wholesaling tax delinquent properties in Louisiana

Pull the list. Request delinquent accounts from the parish and sort by equity.
Reach the owner. Send letters first, then follow up by phone within the rules.
Get the payoff. Ask the parish for the tax balance, penalties and any sale status.
Disclose in writing. Before the contract, state your intent to resell, urge legal advice and explain the cancellation right.
Run the numbers. Use the ARV calculator and the MAO calculator after taxes and repairs.
Sign with the notice. Attach the state cancellation form and place the required notice next to the seller signature.
Close through title. Order a title search and close with taxes paid from proceeds.

Your checklist for wholesaling Tax Delinquent Properties in Louisiana

Get a written tax payoff before you set your price.
Confirm the owner, not a relative, is the signing party.
Deliver every Act 807 disclosure before the contract is signed.
Hold at least 1% of the price as an escrowed deposit.
Ask your attorney whether any tax sale has already happened.

A Louisiana example: a Gentilly owner behind on taxes

Home	3-bedroom house, Gentilly
Estimated value after repairs	$235,000
Back taxes and penalties	$9,400
Contract price	$118,000
Assignment fee	$11,000
Seller’s net after taxes	About $108,600

In this worked example, a Gentilly owner inherited a house from an aunt and let the tax bills slide for three years. The parish balance was $9,400. After repairs, the home might sell for about $235,000.

You offered $118,000 and gave the written disclosures first. The owner did not cancel within five days. A deposit of $1,200 went into escrow, which is more than 1% of the price.

A rehabber paid you $11,000 to take over the contract. Title paid the parish from the proceeds and the owner left with roughly $108,600. These numbers are an illustration, not market data.

Louisiana rules to know

Act 807, tax sales and the redemption period

Act 807 applies when you secure a contract to resell the rights on a one-to-four unit home. Before each contract you must give the owner written notice of your intent to resell for a higher price and a recommendation to seek legal advice. The owner can cancel for any reason for at least five calendar days.

On the tax side, Louisiana tax sales fall under R.S. 47:2121 and following, and owners generally have a redemption period measured in years. Check current text and ask counsel before you promise a seller anything. Also read R.S. 37:1459 about unlicensed real estate activity, and the license guide.

Learn it with a mentor

Learn to price tax delinquent deals

The math on back taxes is simple once you have seen a few files. Mentorship students send us their payoffs and drafts, and we walk through them with them.

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FAQ

Tax Delinquent Properties in Louisiana: common questions

Is wholesaling tax delinquent properties in Louisiana legal?

Yes, but Act 807 of 2026 regulates wholesaling of one-to-four unit homes. You must give written disclosures, include the state notice and respect a five-day cancellation right. Check the current text with a Louisiana attorney or the Louisiana Real Estate Commission before you sign anything.

How long can an owner redeem after a Louisiana tax sale?

Generally three years after the tax sale is recorded, by paying the price, costs and statutory penalty and interest. Rules are detailed and can change, so check current text on legis.la.gov or ask an attorney before you advise a seller about their redemption deadline.

Can I pay the back taxes from closing proceeds?

In most cases yes. A title company can request a payoff, pay the parish at closing and send the remaining proceeds to the seller. Ask for the payoff in writing early, because penalties and interest keep growing while the deal is pending.

Do I need a license to wholesale tax delinquent houses?

It depends on how you structure the deal. Louisiana exempts owners acting on their own property, but selling contract rights is a gray area, and unlicensed real estate activity can bring penalties. Ask a Louisiana attorney or the Louisiana Real Estate Commission before you market a contract.

What deposit does Louisiana require?

Under Act 807, as written, each wholesaling contract needs a deposit of at least 1% of the purchase price, held in escrow in Louisiana or in the seller account. If the seller cancels inside the rescission period, you get it back. Check current text.