Foreclosure laws vary from state to state. Even some municipalities may offer their own foreclosure restrictions and procedures that must be followed in order for a lender to legally repossess a home. Louisiana is no exception. Here are the basic steps to foreclosure in that state.
Knowing Your Foreclosure Rights
Understand what types of foreclosure Louisiana allows. A lender may only foreclose In Louisiana using the judicial foreclosure process. This means that the entire process must been overseen and approved by the court . The Right of Redemption is not permitted in the state, making all foreclosure sales permanent. Deficiency judgments are allowed, however, which can in some situations make the mortgage borrower responsible for paying any difference between the amount still owed on the delinquent mortgage and the sales price of the home at auction.
The demand for payment. Once a foreclosure order is issued by the court, the borrower must be served with a demand for payment. The borrower then has three days to pay the lender all delinquent payments, including penalties and interest.
The writ of seizure. Should the homeowner fail to make the payment within the specified time, the lender may petition the court for a writ of seizure and sale, allowing the lender to advertise and sell the property at public auction.
Notification of all parties. Once a writ of seizure and sale is authorized, the lender must notify all parties listed in the original mortgage documents within 30 days, outlining the date, time and place of the foreclosure auction.
Advertisement of the auction. Under state law, the lender must advertise the auction for 30 days at the county courthouse, through advertisements in the local newspaper, and/or by signage at the property site.
Sale of the property. No minimum bid is required at public foreclosure auctions in Louisiana, which means that the lender can accept any bid on the property and force the homeowner to pay the difference between the amount owed and the sales price received. The lender may also take possession of the home and sell or rent it at a later date.
Eviction. Once the foreclosure sale is complete, the new owner must obey all local and state eviction laws to remove the previous homeowners from the property.