Louisiana Foreclosure Laws

Louisiana foreclosure laws permit only judicial, or in-court, foreclosure proceedings. This means that all foreclosures in the state are administered through the courts. Most Louisiana foreclosures take between six and nine months to complete.

Pre-Foreclosure

While Louisiana only allows judicial foreclosures, it actually has to options for in-court foreclosures: ordinary and executory processes. Ordinary foreclosure processes is similar to a lawsuit and costs more. The process lasts approximately nine months, in most cases. The executory foreclosure process is only possible if the mortgage the debtor has signed has a special act. This act -- "authentic act that imparts a confession of judgment" - allows the foreclosure process to move more quickly. An executory foreclosure can take as little as six months.

A Louisiana foreclosure depends on the clauses included in a deed of trust or a mortgage. If the mortgage or deed of trust require it, the lender may need to send the debtor a notice that he or she is initiating the foreclosure process. No state law requires such a notice, however. The foreclosure process truly begins when the lender files a petition for foreclosure in court. Once this happens, the debtor is served with a document demanding the amount of the default. The debtor has three days to produce the default amount. If the debtor does not pay this amount, the court orders what is known as a writ of seizure and sale. This is delivered to the sheriff by the clerk.

Notice of Auction

The sheriff must personally serve the notice of auction (also known as the notice of sale) to the debtor. In addition, the sheriff must also ensure that the notice is published twice in a local newspaper.

The actual auction is public and open to any bidders. It is usually overseen by the sheriff. In most cases, the winning bidder must pay the bid price on the auction day in cash. However, in some cases, winning bidders are allowed to make a 10% deposit on the day of the auction and pay the balance within thirty days. Once the bid amount is paid, the winning bidder is issued a deed. Louisiana offers no redemption power and no redemption rights after the sale.