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There is no Non-Judicial Foreclosure process in Louisiana, and the original loan documents will not contain a “power of sale” clause, pre-authorizing the lender to sell the property in the event of a default. Judicial Foreclosure procedures in Louisiana can take two forms.
The first form requires the lender to sue the borrower on default of the loan, and obtain a court order to foreclose on the property.
The second form is called an executory process. This process requires the original mortgage documents to contain a “confession of judgment” clause, which can be executed if the borrower defaults on the loan. The court issues an order to foreclose and issues a demand for payment of the delinquent amount from the borrower. The borrower has only three (3) to cure the default, and if the borrower can not cure the default in the time given, the court issues a writ of seizure and sale.
With either form used, the sale must be advertised for (30) days before it is sold at a public auction. If the property does not sell for an amount that would pay off the original balance due plus costs, the lender has the right to sue the borrower for a deficiency judgment. The borrower has no right to redeem the property after the sale. |
