Quick Facts
– Judicial Foreclosure Available: Yes
– Non-Judicial Foreclosure Available: No
– Primary Security Instruments: Mortgage
– Timeline: Typically 60 days
– Right of Redemption: No
– Deficiency Judgments Allowed: Yes
In Louisiana, lenders may foreclose on a mortgage in default by using the judicial foreclosure process.
Judicial Foreclosure
There are two types of judicial foreclosure proceedings in Louisiana, executory and ordinary process.
Executory Process
The executory process occurs when the lender uses a mortgage that includes an “authentic act that imparts a confession of judgment,” as provided in the Louisiana statutes. Essentially, this means the borrower signed and acknowledged the mortgage obligations in the presence of a notary public and two witnesses. This type of mortgage makes the foreclosure process easier for the lender because once the suit has been filed and the original note and a certified copy of the mortgage have been provided, the court will issue an order for the process to begin.
Demand For Delinquent Payment
Once ordered, the borrower must then be served with a demand for the delinquent payments. The borrower has three (3) days to provide the outstanding fees, or the court will order a writ of seizure and sale, and the property will be sold after proper notice has been advertised for thirty (30) days.
Lender May Sue for Deficiency Judgement
Lenders may also sue to obtain a deficiency judgment, but buyers have no rights of redemption.
