Local investors and buyers have voiced concerns after paying CivicSource for tax-adjudicated properties through auctions, only to be left without clear title or refunds. The situation has led to litigation, the termination of a parish contract, and a court-mandated audit, impacting numerous property transactions in the New Orleans area.

Recent reports confirmed that several bidders who participated in CivicSource’s online auctions have not received the expected titles or reimbursement. The issue has escalated to the Orleans Parish Civil District Court, where a judge has ordered an audit of transactions conducted by CivicSource and the City of New Orleans. In addition to this, it was reported that St. Tammany Parish ended its contract with CivicSource on March 4, 2026, due to financial discrepancies.

The City of New Orleans has accused CivicSource of halting the remittance of sale proceeds, claiming the company owes the city nearly $200,000. In a separate lawsuit, CivicSource suggested the city refused to return $1.8 million used to prepare properties for auction. Meanwhile, Sedgwick County, Kansas, has alleged that CivicSource owes $1.3 million.

Several buyers, including Cory Cheramie, who invested approximately $40,000, reported prolonged delays in receiving their titles and unfinished settlement paperwork, with no sign of getting their money back. The court’s decision to appoint an auditor aims to scrutinize the financial transactions between CivicSource and the city, although no timeline has been provided for when this audit will be completed.

This situation underscores the risks associated with private auction platforms, as the issues with titles and settlements may affect local lenders, title companies, and buyers. The results of the court audit and municipal contract changes could reshape how the City of New Orleans and other parishes run their adjudicated property programs, potentially impacting revenue streams and the reintegration of properties into the market.

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