Louisiana Laws

Louisiana foreclosure may only be pursued through judicial means, but there are two types of judicial foreclosures available. These are known as "executory" and "ordinary" foreclosures. An ordinary foreclosure is similar to foreclosures in other states, but takes much longer than an executory foreclosure.

An executory foreclosure may be used if the mortgage contains a clause stating that the homeowner signed the mortgage agreement with full knowledge of the consequences of default. In order for this clause to be valid, the mortgage must have been signed in the presence of a notary public and two witnesses. This basically means that if a homeowner defaults, there is no legal basis for contesting the foreclosure, and it allows the lender to pursue a foreclosure without the need for the extended judicial proceedings that ordinary foreclosures call for.

After the lender files for executory foreclosure with the court system, the homeowner is given three days in which to pay off the default debt owed. If payment is not received, the court will issue an order for the repossession and public sale of the homeowner's property in order to reclaim the loan amount for the lender.

In the case of either an ordinary or executory foreclosure, a Notice of Sale must be drafted and published twice in a local newspaper in the weeks preceding the sale date. The Sheriff is responsible for personally informing the homeowner of the sale date, which may not take place until thirty days after the court's ruling.

On the day of the sale, the Sheriff auctions off the homeowner's property to the highest bidder. The winning bidder must immediately present payment for their bid, although in some cases the winner may be allowed 30 days to provide payment as long as they put down a deposit of at least ten percent immediately.

Louisiana foreclosure law provides the homeowner with no right to redemption once a sale has concluded.

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