What Does A Creditor Need To Do To Foreclose On A House In Louisiana?

Foreclosure is the process that a creditor uses to take a house if the loan is not paid.  So what does your creditor need to do to foreclose on your house?

Louisiana is what is known as a Judicial Foreclosure state.  This means that in order for a creditor to foreclose on your house they need to file a lawsuit in court and get a judgment against you.

In Louisiana, when you borrow money from a creditor to buy a house you sign a document called a mortgage.  The mortgage document gives the creditor a lien on your house.  How difficult it will be for the creditor to foreclose on your house will depend upon the type of mortgage documents that you signed.

There are two different judicial procedures for foreclosing on a house in Louisiana:  the “ordinary process” and the “executory process”.  How difficult it will be for the creditor to foreclose on your house will depend upon the type of mortgage documents that you signed.

The main difference between ordinary process and executory process is that in a mortgage that allows executory process you signed a document often referred to as an authentic act or a confession of judgment.  This document is an admission by you that owe money to the creditor.

By using executory process the creditor can usually obtain a foreclosure in a much shorter period of time than if it used ordinary process and also obtain the foreclosure at much less cost.

If you get a lawsuit seeking to foreclose on your house you should bring it to an attorney experienced in foreclosure proceedings and bankruptcy proceedings as soon as possible.  He can offer advise that can, under certain circumstances, allow you to keep your house or at least slow the process to allow you to remain in the house longer.