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Can You Sell a House in Foreclosure in Louisiana?

Yes, you can sell a house in foreclosure in Louisiana, BUT you must act quickly and make sure you talk to the right people. You will need to get a legitimate signed offer on your house before the auction date. More than that, make sure you’re talking to the right people who will shoot straight with you. We’ve seen a number of people unnecessarily go into foreclosure because they were told the wrong information. Fill out the form and get a free CASH offer for your house TODAY!

DISCLAIMER: This article is meant for educational purposes only and is not intended to be construed as financial, tax, or legal advice. Louisiana Direct Home Buyers always encourages you to reach out to an advisor regarding your own situation.

Sell My House in Foreclosure in Louisiana

cash offer for house new orleans

The heart of a family is its home, but it can feel like a jail when mortgage payments are overdue. Louisiana homeowners behind on their mortgage payments are in danger of losing their homes and should educate themselves as soon as possible on the foreclosure process. The time frame for a foreclosure in Louisiana is short. Many states have a right of redemption, one’s ability to reclaim a property even after the foreclosure sale takes place, but Louisiana isn’t one of them.

Calling Louisiana Direct Home Buyers is a good thing to do very early in the process.

Because Louisiana is a judicial foreclosure state, the length of time for foreclosing on a Louisiana home might differ depending on the court schedule. That’s why it is less consistent than non-judicial states like Texas. Most of the time, it takes a lender between 6 and 9 months to foreclose a Louisiana property.

Time is of the essence. If you are behind on your payments, you should call someone fast. Louisiana Direct Home Buyers is glad to talk to you about how we can purchase your house and make it as hassle-free as possible.

Selling a Louisiana house during the foreclosure process is possible, but the lender should be informed. In most states, the lender cannot foreclose a property if it has a legitimate offer. The homeowner should prove that such a cash offer exists and arrange for closing as soon as possible. Louisiana Direct Home Buyers will help out any way we can.

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What is Foreclosure in Louisiana?

avoiding foreclosure in New Orleans

Foreclosure occurs when a lender exercises the terms in the mortgage loan allowing it to seize the asset (house) after the borrower falls behind on payments for a certain length of time. The length of time varies by jurisdiction, although it is usually no less than 120 days.

Louisiana is a “judicial state”, meaning that the court is involved in each home mortgage foreclosure. Two types of judicial foreclosures in Louisiana: 1) ordinary and 2) executory. The executory process normally used in foreclosing on homes in Louisiana. All foreclosures in Louisiana are governed by La. Code Civ. Proc. Ann. Arts. 2631 to 2772 and 3721 to 3753.

In Louisiana, most mortgages contain a certain specific clause in the mortgage allowing the lender to simply present the court with a certified copy of the mortgage and original note. The court then will order that the foreclosure process starts. That is why you will often read that the length of time varies. While true, most consumers must prepare for the shorter time.

Service of Notices and Writs

When the court orders the foreclosure process to start, the borrower gets a heads-up from the sheriff. They have three days to pay the overdue amount to the lender. This is also the time for homeowners to try to work out a deal with the lender. While many states have a mandatory mediation program for homeowners, Louisiana does not have one.

If the homeowner fails to pay, the court will proceed with the foreclosure process. A writ of seizure and sale will be issued, and the property will be advertised for 30 days. Following this period, the auction or sale can take place.

Personal Note from Becky:

I cringe every time I edit our web page regarding foreclosures. It is tough losing your home. But one thing I’ve learned is that facing the music and calling for help sooner rather than later saves a lot of grief for everyone, especially your loved ones. Look at the video testimonial below of one person who called before it got too bad and we were able to allow him to walk away with a little bit of cash in his pocket and a clear credit record. Just call us. We’ll shoot straight with you.

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What Happens to Me in a Foreclosure?

What Happens to Me in a Foreclosure in Louisiana

The lender is foreclosing to recoup its loss on your mortgage. This foreclosure impacts you in many ways, including:

Eviction from Your Home

In addition to losing any equity you had built up in your home, the sheriff will forcefully remove you from your home following the auction.

Deficiency Balance Owed

You still owe the lender, and they may sue you for the difference between the obligation per the mortgage and the amount received at auction. However, the lender must take separate actions to collect this balance owed.

Timeline of the Foreclosure Process in Louisiana

timeline of the foreclosure process in louisiana

The Foreclosure Timeline Varies Significantly, but the Stages are Consistent. Understanding this timeline helps you know how to sell a house during the Louisiana foreclosure process. Generally, this process has six phases. This article from Forbes explains the process very well.

1. First Missed Payment

After the borrower misses the mortgage payment the first time, the lender normally contacts the borrower to urge them to resume timely payments. The lender usually has a grace period of 15 days after which they’re hit with a late fee.

Some lenders are quick to report a late payment to the credit bureaus.

2. Mortgage Default

Many websites state that a mortgage is in default when it is 90 days past due, but as we noted above, in 2014, the Dodd-Frank legislation impacted this by generally extending it to 120 days (see below). Our experience is that it does not matter. If you are behind on your mortgage, there is likely a reason, and calling us sooner rather than later will be the way to go.

3. Notice of Default (NOD)

start of foreclosure in louisiana

Generally the process cannot start until the borrower is behind 120 days on payments. This notice marks the beginning of the pre-foreclosure stage.

4. Start of Foreclosure (or Pre-Foreclosure)

If the borrower cannot get caught up and resume payments, the lender can ask the appropriate court to start foreclosure. The court names a trustee to run the auction of the property. The timetable for foreclosures will vary depending on the lender, the Parish, and who’s behind the bench.

  • Most mortgage loans in Louisiana have clauses allowing the lender to go directly to the judge and quickly start the process once the 120 days pass.
    • Court calendar backlogs can interfere with the lender’s plans since the court must approve each stage of the process. 
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5. Notice of Trustee Sale

notice of trustee sale in louisiana

Depending on local laws, the trustee posts notices in public locations and in local publications several weeks before the auction, defining the property and its location and indicating when it will be auctioned.

  • Auction: The trustee auctions off the property, establishing a minimum offer based on the appraised value, the outstanding amount owed, other liens, and unpaid taxes. The highest bidder who meets or surpasses the minimum bid gets the property.
  • REO: If nobody bids the minimum amount, the property becomes real estate-owned (REO), meaning the lender is now the title holder. REO homes are then sold in another process as-is and often well below market prices.

6. Notice of Eviction

If the property is sold at auction or becomes an REO, you will be notified to vacate the property if necessary. If they don’t leave within a certain amount of time (each jurisdiction will vary), the sheriff will usually escort you from the property, confiscate any possessions you leave behind, and padlock the property on behalf of the new owners.

Should I just let the bank foreclose?

should i just let the bank foreclose on my house

This is always an option if you have no equity in the house, but it will impact your credit rating significantly which will stay with you for years. You will have problems getting credit and if you’re successful, you will pay a higher interest rate than other people because you’re looked upon as a risk. You should try to avoid foreclosure. Many options exist to do this. If you face foreclosure, don’t ignore it.

Reach out to Louisiana Direct Home Buyers and we will see if a sale of your property could be successful so you can keep some of the equity you have in your house.

Can You Sell a House in Foreclosure in Louisiana?

sell a house in foreclosure in louisiana

Yes, you can sell your house in foreclosure in Louisiana. At any time before the Sheriff Sale occurs, you can sell your house before the foreclosure and pay your mortgage off with the proceeds. If you sell your house before it is foreclosed, you will be able to save your credit rating and collect what equity you have in the house. Considerable fees associated with a foreclosure kick in when it goes to auction and at this point you might lose all your equity. This is why you should act as fast as you can when your notification of foreclosure comes. It’s possible to stop a foreclosure at the last minute, but very risky. The sooner you seek help, the more likely you will be able to get at least some of your equity out of it. Reach out to Louisiana Direct Home Buyers!

Selling a house before foreclosure give you many benefits, including:

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No foreclosure on your credit record

A foreclosure stays on your credit record for usually seven years. You won’t have the difficulty securing loans you would have with a bad credit record.

You can buy another house

A foreclosure on your credit history would make it difficult to obtain a new mortgage. Selling your home helps you avoid this, and you will secure new housing right away.

No deficiency balance

As mentioned earlier, the bank may ask you to pay for a deficiency balance if the proceeds of the property couldn’t cover the mortgage and other fees. If you sell your home during the foreclosure process, you’ll get enough money to pay the mortgage, especially if you hire a great real estate agent.

Can you stop a foreclosure in the last minute?

can you stop a foreclosure in the last minute

Yes you can stop a foreclosure right before a sheriff sale, but it’s risky. Don’t wait too long to act. Selling your house can take time, so you need to act quickly to avoid foreclosure. Selling your property to an investor like Louisiana Direct Home Buyers helps because we can act quickly. We can close fast and abort the foreclosure process.

Summary: Can You Sell a House in Foreclosure Louisiana?

In Louisiana nothing prevents you from selling your house in foreclosure except TIME IS SHORT. The process is more complex, but we have done this before and work with the state’s leading title attorneys, and want you to avoid foreclosure and get back to your life.

When you receive a Notice of Default, take action immediately. Call Louisiana Direct Home Buyers and we will be honest and up front with you.

If the auction date is really close, reach out to us here at Louisiana Direct Home Buyers. We have helped homeowners just like you avoid foreclosure right before auction by offering cash for their house (our offers are free). Fill out the form below or call us at (504) 732-1988.

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Testimonial

Becky’s Promise

Louisiana Direct Home Buyers is a cash home buying company that does it right.

becky's promise about buying houses for cash in Louisiana
best home buyer in Louisiana

I have learned over the years that keeping your word is the most important thing you can do when doing business with people. I have raised a large family and watched my kids achieve things greater than me. I helped my husband grow an engineering firm from 1 person to 65 as the controller and CFO. And I have been investing in real estate for ten years. Throughout my life I have confirmed what my dad always told me, “your life is as good as your word, keep your word!” My promise to you is to treat you fairly and respect and value your time. There is no obligation in working with me. I’ll give you a 100% FREE cash offer for your house, and you have no obligation to accept it. We are straight shooters. Feel free to call today. It’s an emotional decision to sell your house to us. I’ll make it as easy as I can for you. 🙂

Becky signature for we buy houses New Orleans

Act TODAY! Reach out and see how Louisiana Direct Home Buyers can help.

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