Foreclosure Laws on Homeowners in Louisiana
Once you are late with a payment or payments, a lender can file suit against you. He will produce a certified copy of the mortgage and the original note in court because that is the only way a lender can foreclose on a piece of real estate in Louisiana. The homeowner will then be served with a summons that says back payments are due. Under Louisiana law, the homeowner has three days to pay what is owed.
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Two Types of Lawsuits
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In Louisiana, there are two ways a lender can sue. The executory process relies on existing language in the mortgage that says the borrower relinquishes the right to be notified if the lender files for foreclosure. This process expedites the foreclosure. On the other hand, an ordinary process-necessary if executory language is missing-is more cumbersome and makes the foreclosure last several more months.
Writ of Seizure and Sale
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Three days after the homeowner has been notified that the lender has foreclosed on the property and if the homeowner has not repaid the loan, a Writ of Seizure and Sale will be served the debtor by a law enforcement official (sheriff or deputy). In Louisiana, a foreclosure notice must be advertised a minimum of two times in a publication that is read in the parish where the property is located.
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The Sale
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The sheriff will conduct the sale of a Louisiana property that has been foreclosed. In most cases, the party with the winning bid will pay cash the day of the sale. Anyone can bid on the property, even the person who owns the property. Louisiana law states that the winner will pay 10 percent of the winning bid on the day of the sale, and the balance within 30 days. If the buyer fails to pay the balance when due, he will forfeit his deposit and the property will be resold. Once the homeowner receives the Writ of Seizure and Sale, he no longer can redeem the property in Louisiana. This is unlike most other states that allow the homeowner a time when he either can pay off the loan or match its sale price.
Deficiency
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In Louisiana, a lender can sue the homeowner if the balance of the note is more than the net proceeds of the sale, although it happens infrequently.
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References
- Photo Credit Louisiana state contour against blurred USA flag image by Stasys Eidiejus from Fotolia.com
