Louisiana Foreclosure Law
- Judicial Foreclosure Available: Yes
- Non-Judicial Foreclosure Available: No
- Primary Security Instruments: Mortgage
- Timeline: Usually 60 days
- Right of Redemption1: No
- Deficiency Judgments2 Allowed: Yes
Lenders in the state of Louisiana may foreclose on a mortgage in default using the judicial foreclosure process, of which there are two types: executory and ordinary.
Judicial Foreclosure
A judicial process of foreclosure requires that the lender file a lawsuit and attain a court order to foreclose on a particular property.
The executory process occurs when the lender uses a mortgage document that includes an "authentic act that imparts a confession of judgment". In plain English, this means the borrower signed and acknowledged the obligations of the mortgage in the presence of a notary public and two witnesses. With this process, the court will typically issue an order for the foreclosure process to begin after the lender files the original note and a certified copy of the mortgage with the court.
Once the court issues the order, the borrower is served with a demand for the delinquent payments. The borrower has three (3) days to provide the delinquent payments or the court will order a writ of seizure. After being advertised for thirty (30) days, the sale proceeds and the property is sold.
The buyer has no rights of redemption. The lender may pursue a deficiency judgment if so desired.
The ordinary process works more like a lawsuit and is often more extensive and costly. This foreclosure process typically lasts about nine (9) months.
1 A borrower’s right to reacquire property lost due to a foreclosure.
2 A personal judgment against the borrower for the remaining balance on the loan after a foreclosure sale.
Search for Louisiana Foreclosed Homes