Louisiana Foreclosure Laws
Judicial Foreclosure Available: Yes
Non-Judicial Foreclosure Available: No
Security Instruments: Mortgage
Right of Redemption Period: No
Deficiency Judgments Allowed: No
Time Frame: Typically 60 Days
Public Notice: Petition
Louisiana is considered to be a lien theory state, which means that property acts as security for a borrower’s loan. In the state, the document that places the lien on a property is called a mortgage. If a lender defaults on their loan, their property may be foreclosed. However, only judicial foreclosures are allowed in the state.
Louisiana foreclosure law tends to favor the lender. It is based on the prevalent European civil law system as opposed to the English common law system. The state does not have a right of redemption statute, which would give the defaulting borrower a chance to reclaim their property by paying off their debt in full, nor does it allow deficiency judgments to be passed, which would allow the lender to sue the borrower for any outstanding debt left over after a property has been sold.
Foreclosures usually take 60 days to complete in Louisiana; however, they may finalize faster or take more time. Those who have been issued a foreclosure notice are able to legal help to protect their rights and try to save their homes from repossession.
Types of Foreclosures Allowed in Louisiana
Louisiana foreclosure law allows for judicial foreclosures on defaulted property. This type of foreclosure, also known as foreclosure by judicial sale, involves selling the defaulted property under court supervision. In order for a judicial foreclosure to be possible, no power of sale clause may be present in the loan documents.
To start the process, the lender must file a lawsuit against the borrower and the court will then issue a final judgment of foreclosure. There are two ways a foreclosure in Louisiana can be carried out. One is by what is known as the ordinary process, which is a form of contested litigation, and the other form is known as the executor process, which uses a pre-existing confession of judgment authenticated through the judicial process.
With the confession of judgment, a borrower executes a legal document allowing for immediate judgment to take place in the event of default. This makes for faster foreclosure proceedings because once the lawsuit against the borrower has been filed and the original note and certified copy of the mortgage has been provided, the foreclosure process will begin right away.
A confession of judgment serves the same purpose as a power of sale clause in other states. The borrower will receive a three (3) day notice upon default. If the loan is not satisfied, then the property will be advertised once a week for thirty (30) days and will then be sold at auction.
Soliciting Legal Help
The country is in the midst of an economic standstill. Homeowners that were previously able to afford their mortgages without a problem are now finding themselves struggling just to make ends meet. Once a mortgagor defaults, foreclosure is imminent. If you have been behind on your mortgage or have already received a notice of default, you may fear that your property will be foreclosed right away. You may feel as though there is nothing that can be done, but help is readily available. Turn to a skilled foreclosure lawyer in Louisiana right away to prevent your home from being repossessed.
Foreclosure attorneys fight for the rights of all Louisiana homeowners to protect their rights. When you work with a leading foreclosure lawyer, you can rest assured that your interests will be fought for and your case will end with the best possible outcome. Your paralegal will review your financial situation and come up with a plan of action to present to lenders as an alternative to foreclosure. Some ideas include mortgage modification, short sale, refinancing or even a temporary halt in payments. Since foreclosures can actually cost lenders money, chances are if your foreclosure attorney comes up with an adequate plan that benefits all parties involved, the lender will most likely agree.
Whether you are struggling with your mortgage because of job loss, pay cuts or even because of medical bills, foreclosure lawyers are here to help you protect your rights and prevent your home from being seized. Don’t waste another minute before soliciting the legal help you deserve right now. Turn to an acclaimed foreclosure attorney in Louisiana right away to get started on your case.