Traditionally, Louisiana law has provided few protections to homeowners in foreclosure. But a new law, the Louisiana Home Protection Act, helps Louisiana residents going through foreclosure by requiring foreclosing lenders to provide more information to homeowners about their options to avoid foreclosure.
(For more articles on Louisiana foreclosure law, visit our Louisiana Foreclosure Law Center.)
The most common method of foreclosure in Louisiana is called “executory process.” In this type of foreclosure, the foreclosing lender does not have to sue the borrower in court. Instead, if the borrower defaults, the lender merely files a foreclosure petition with the mortgage attached and the court summarily orders the property seized and sold. The homeowner can fight the foreclosure only by appealing or bringing a lawsuit.
In order to use executory process, the mortgage document must have a clause where the borrower agrees or “confesses” to a judgment if he or she defaults. Most residential mortgages in Louisiana have this clause. If the mortgage document doesn’t have this clause, then the lender must sue the homeowner in court – this is called a judicial foreclosure. (To learn more see Summary of Louisiana’s Foreclosure Laws.)
Recently, the Louisiana legislature passed, and the governor signed into law Act No. 339, also referred to as the Louisiana Home Protection Act. This new law amends existing foreclosure law to add more protections for homeowners in foreclosure.
Under the new law, the foreclosure sale date cannot be earlier than 60 days after the court signs the order allowing the sale.
When the sheriff serves notice of the sale date on the homeowner in a residential foreclosure, the notice must include specific language about the homeowner’s rights and available assistance, including that:
The Act went into effect on August 1, 2013, so it applies to foreclosures filed on or after that date.
The law is found in Louisiana Revised Statutes § 13:3852 and the Louisiana Code of Civil Procedures, § 2293(B)(1). You can find the text of The Louisiana Home Protection Act on the website for the Louisiana State Legislature at www.legis.la.gov/legis.