Investors in New Orleans and neighboring St. Tammany Parish say a run at easy deals on tax-sale properties has turned into a long wait with few answers after using CivicSource, the New Orleans based online auction firm. Buyers report paying thousands, in several cases tens of thousands, yet still do not have clear title or confirmation that the money ever reached the local governments that were supposed to benefit. The fallout has triggered court filings, a judge ordered audit and fresh scrutiny from other counties that relied on the same platform.
Sedgwick County Says $1.28M Not Transferred
Hundreds of miles away, Sedgwick County, Kan., says it is dealing with a similar headache. The county, which used CivicSource to administer an Oct. 21, 2025 tax-foreclosure sale, alleges the company failed to transfer $1,281,357.08 in proceeds and has filed a theft report with local and federal authorities. Sedgwick County ended its contract with CivicSource and moved to place contingency funds in the district court registry so affected purchasers can be made whole. Those steps are detailed by Sedgwick County.
Local Buyers Left In Limbo
Closer to home, local buyers including Cory Cheramie and his wife say their own CivicSource deals have stalled out. The couple reports paying nearly $40,000 for several tax-sale properties last October but says they still do not have clear title for most of them. One of Cheramie’s Orleans Parish purchases was eventually recorded. Four St. Tammany parcels, however, remain unresolved, and buyers say the settlement paperwork was incomplete and the parish never signed off.
CivicSource’s attorney told reporters the company is effectively shuttered and “can’t make refunds.” Legal filings from the City of New Orleans allege CivicSource stopped sending sale proceeds and now owes the city nearly $200,000. An Orleans Parish judge has ordered a court-appointed auditor to go through the transactions, as reported by Fox 8.
What This Means For Buyers And Cities
City attorneys have asked the court to direct any money that is recovered back to the bidders, rather than to CivicSource. Parish officials, for their part, have urged affected buyers to consult their own lawyers. Sedgwick County’s move underscores how a breakdown with a private vendor can quickly turn into a multi-jurisdictional fiscal problem for local governments.
In the meantime, buyers are being advised to hold on to every scrap of paper they have: settlement statements, receipts and correspondence. They are also being encouraged to check directly with the parish or county treasurer about the status of sale proceeds while the legal process plays out.
