Foreclosure & Alternatives Law
A home is the heart of the family. When the mortgage payments on that home are past due, the home can start to feel more like a prison. Homeowners in Louisiana who are facing foreclosure should learn about the foreclosure process as quickly as possible. The time frame for a foreclosure in Louisiana is short. Since the state doesn't allow any rights to redemption knowing how to handle the foreclosure is vital.
All foreclosures in Louisiana must go through the judicial process, meaning that the court is involved. There are two types of judicial foreclosures that are used in the state: ordinary and executory. In most cases, the executory process is the one used to foreclose upon a home in Louisiana. All foreclosures in Louisiana are governed by La. Code Civ. Proc. Ann. Arts. 2631 to 2772 and 3721 to 3753.
Executory foreclosures occur when there is a specific clause in the mortgage. This is an “authentic act that imparts a confession of judgment” that is written in accordance with the state's statues. The mortgage obligation has to be signed by the borrower in the presence of two witnesses and a notary public.
When the mortgage contains that information, the lender only has to provide the court with a certified copy of the mortgage and original note. From there, the court will order that the foreclosure process starts.
In the absence of that clause or act in the mortgage contract, the lender will have to go through a more lengthy process to get the foreclosure started. For that reason, almost all mortgage contracts have the act in them.
When the court orders the foreclosure process to begin, the borrower will be notified. This notification is served by the Sheriff. It gives the borrower three days to make the mortgage current again. That means the borrower has three days to pay the past due amount to the lender. This is also the time period that allows homeowners to try to work out a deal with the lender; however, there isn't a state mandated mediation program for homeowners to rely upon.
If the homeowner doesn't remedy the default on the mortgage, the court moves forward with the foreclosure process. A writ of seizure and sale is ordered. The sale of the property is then advertised for 30 days. After that period, the auction or sale can move forward.
Louisiana doesn't allow any period of redemption for borrowers. While the entire foreclosure usually takes 60 to 180 days, the borrower has to move quickly to stop the foreclosure. Once the writ of seizure and sale is ordered, the borrower can't remedy the mortgage to remain in the home.
In most cases, lenders can seek deficiency judgments in Louisiana. A deficiency judgment is only possible if the home was appraised properly. The appraisal requirement can be waived if the mortgage contract specifically waives the appraisal requirement.
With the speed of the foreclosure process in Louisiana, it is vital that homeowners work as quickly as possible to find a way to stop the foreclosure. Seeking help from an experienced foreclosure attorney can help you to learn your rights and options.