Buying A Louisiana Home In Foreclosure
If you try to purchase foreclosure properties in the state of Louisiana, it’s important to understand the foreclosure process. In the state of Louisiana, a lender has the option of two judicial foreclosure processesis to foreclose on a delinquent mortgage: executory and ordinary. In the ordinary foreclosure process, the lawsuit is filed and a court order is attained to auction off the property.
In the executory process, the lender utilizes a mortgage that includes an “authentic act that imparts a confession of judgment”, this statute is unique to the state of Louisiana indicating that the borrower signed and acknowledged the obligations of the mortgage in front of a notary public and two witnesses. When a lender uses this type of mortgage, the foreclosure process is simplified because once the suit is filed and a certified copy of the mortgage is provided as evidence, the court will issue an order for the foreclosure process to start.
When the court orders the executory process, the borrower has to be served with a demand for the delinquent payments. The borrower must pay the court within three days or a writ of seizure will be ordered by the court. Once the property is advertise for three days, it can be sold at an auction.
The state of Louisiana permits lenders to litigate to obtain a deficiency judgment. Borrowers are not allowed the right of redemption.
If the borrower decides to take advantage of the legal option of bankruptcy to stop the foreclosure process, the state of Louisiana provides a $25,000 homestead exemption. If the debt was caused by a terminal illness, a disastrous event, or injury one year prior to the filing of the bankruptcy, the homestead exemption becomes unlimited providing the home is less than five acres in a city or town or 200 acres everywhere else in the state.
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