Louisiana Foreclosure Law

Louisiana foreclosures law accepts judicial foreclosure only. Non-judicial foreclosure has no acceptance in Louisiana foreclosure law. In Louisiana State timeline of the foreclosure process typically involves 60 days. Foreclosure sale depends on mortgage only as primary security instruments; the deed of trust has no acceptance in Louisiana foreclosure. Louisiana foreclosure law doesn’t permits right of redemption. Deficiency Judgments are also allowed by Louisiana foreclosure law.

The foreclosure process in state of Louisiana may be worked out by following judicial foreclosure on mortgages as primary security instrument in default.

Judicial Foreclosure
Judicial foreclosure process is generally used when “no power of sale” is there in the mortgage or deed of trust. The judicial foreclosure process requires filing of a lawsuit by lender to obtain a court order to foreclose on a particular property. A “power of sale clause” in a deed of trust or mortgage empowers lender to sale or transfer of land as summarized by the terms of that clause.

In Louisiana judicial foreclosure proceedings may work out by following the two approaches executory process and ordinary process.

Executory process
The executory process suggest itself when lender utilize the mortgage inclusive with the clause “authentic act that imparts a confession of judgment”, as provided by the Louisiana statutes.

Being of the mortgage included with the above clause conveys that the borrower has signed and acknowledged the commitment of the mortgage in the presence of a notary public and two witnesses. Executory process of judicial foreclosure explains that after the lender has filed the original note and a certified copy of the mortgage with the court, in response the court by following the executory process will generally issue an order for the foreclosure process to begin.

The borrower has to be served with a demand for the delinquent payments after that the court issues the order. The borrower has possessed the timeline of three (3) days to provide the delinquent payments otherwise the court will order a writ of seizure by mean of sale. Property will be put on sale after the thirty (30) days prior to the advertisement of the foreclose sale notice.

Ordinary process
The ordinary process proceeds more similar as a lawsuit and is often more broad and costly. Ordinary foreclosure process typically stays about nine (9) months.