Louisiana foreclosure law only allows for judicial foreclosures. Lenders must bring action against the delinquent mortgage holders in court before they can foreclose on a property. The foreclosure process in Louisiana usually takes 2 months or 60 days.
The Judicial Foreclosure process is used when
the mortgage or deed of trust does not include a Power of Sale clause. In a
judicial foreclosure, the lender files a lawsuit and obtains a court order
allowing them to foreclose on the property. The court must reside in the same
county as the property that is being foreclosed upon. Once the foreclosure is
granted an auction will be announced and the home will be sold to the highest
bidder.
Executory Foreclosure is used when the mortgage
contains an "authentic act that imparts a confession of judgment." This is a
clause stating that the borrower had agreed to the obligations of the loan by
signing in front of a notary public and 2 witnesses. With this kind of
mortgage, the foreclosure process starts as soon as the suit is filed and all
the necessary documents have been provided to the homeowner.
Once the foreclosure is ordered, the borrower will
then receive a demand to bring the mortgage current within 3 days. Otherwise,
the court issues a write of seizure and sale, and a notice will be advertised
for at least 30 days before the foreclosure date.
