Judicial/ Non-Judicial Foreclosure: Only Judicial foreclosure
Right of Redemption / Deficiency Judgment: No / Yes
Timeline: 60 Days, Can vary depending on individual cases
Deed of Trust / Mortgage as Security Instruments: Mortgage
Judicial Foreclosure Process:
A Judicial Foreclosure process can happen either through Executory process or Ordinary process in Louisiana.
Louisiana Statutes provides for an ‘Authentic act that imparts a confession of judgment’ clause. If this clause is used by the lender in the mortgage, then the Executory process of Judicial foreclosure takes place. This process requires the borrower to have signed the Mortgage document that contains the above clause in the presence of two witnesses and a Notary public.
In this process, the lender just needs to file a case against the borrower for defaulting the loan amount by providing a certified copy of the mortgage and the details of the default to the Court. Once the Court is convinced, it gives an order for the foreclosure process to begin.
The borrower is given a time of up to three days form the date of this Court order. If they pay up the delinquent payments by then, the foreclosure sale can be avoided. But if they fail to do that, the court can give a notice, seize the property and sell the same to the highest bidder.
The buyer does not have a right of redemption in Louisiana. So, they cannot reclaim their property by paying up their dues, once it is sold off. But the lender has an option to file a deficiency Judgment if the value offered by the highest bidder for the property during the foreclosure sale is less than the actual amount owed by the borrower.