Louisiana Foreclosure Law
Under its laws, lenders may use two types of judicial foreclosures, executory and ordinary. The time frame to complete a foreclosure proceeding varies from case to case and from court to court. In general, one could expect a completed transaction in three to five months, unless delayed by events that could not be controlled, such as improper documentation, service of process problems, bankruptcy, injunction and the like.
The executory process simply means that an agreement was made and signed in the presence of a notary public or a lawyer and two witnesses. This type of judicial foreclosure expedites the process for the lender because what it essentially needs is the filing of a suit and submission of pertinent mortgage documents and the court would issue an order for the process to begin.
The borrower then has to be served with a demand letter for the arrear payments. Three (3) days is provided for delinquent payments to be settled, failure of which would compel the court to order a writ of seizure and sale and the property would be sold after proper notice has been advertised for thirty (30) days.
A deposit of 10% of the sale price is needed for the foreclosure sale, the balance to be paid within (30) days or the property is resold and the successful bidder not only loses the sale but the deposit as well.
Although deficiency judgment is allowed, the right of redemption is not.
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