Louisiana Foreclosure Law

Louisiana foreclosure law is applicable to mortgages in default and follows the judicial foreclosure process. This means that lenders have to go to court and obtain a court order before they can foreclose. The process usually takes 60 days, one of the shortest wait times in the country.

Judicial foreclosure in Louisiana can be carried out in two ways: the ordinary and executory methods.

The ordinary proceedings involve a lawsuit by the lender, which will be assessed by the court. If the court confirms the borrower’s default, they will declare a foreclosure and schedule a sale date. Usually, once the foreclosure is declared, the home is auctioned off and sold to the highest bidder.

The exexutorry foreclosure is used when the mortgage contains an “authentic act that imparts a confession of judgment.” This is a clause stating that the borrower had agreed to the obligations of the loan by signing in front of a notary public and two witnesses. With this kind of mortgage, the foreclosure process starts as soon as the suit is filed and all the necessary documents provided.

Once the foreclosure is ordered, the borrower will then receive a demand to bring the mortgage current within three days. Otherwise, the court issues a writ of seizure and sale, and a notice will be advertised for at least 30 days before the foreclosure date.

Borrowers have no Rights of Redemption, which means that they can’t redeem their property once the sale is made. Lenders can also file deficiency suits after the case if the foreclosure sale is not enough to cover the unpaid balance.

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