Louisiana Foreclosure Laws

The state of Louisiana offers only the judicial foreclosure option and makes no allowance for any type on no-judicial arrangements to handle a foreclosure. The security instruments that are used here are the typical mortgage. There is no right of redemption on behalf of the borrower being foreclosed upon but they laws in the state do allow the lender to have the right of filing for and getting a deficiency judgement against the borrower after they foreclose and sell the property. The entire process in the state of Louisiana takes an average of approximately two full months or sixty days to finish.

There are two different types of foreclosures in the state of Louisiana. The first is the typical foreclosure where the lender has to file legally and sue the borrower in court in order to get an order to allow the foreclosure.

The second method is what is known as the executory process in which the mortgage document contains a “confession of judgment” which can then be executed in the event of default. In this case the court issues an order to foreclose, issues a demand for payment of the delinquent amount and gives the borrower three days to cure the default. If the borrower fails to do so, the court then issues a writ of seizure and sale.

The sale must be advertised for 30 days, and then the property may be sold at auction. The lender may then sue again for any deficiency balance, and the borrower has no right of redemption.

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