The petition is processed on an expedited basis and an order directing the sheriff to seize and sell the property can be issued in a matter of days. If the borrower is a legal entity, such as a corporation or limited liability company, the creditor must have (or locate) a proper written authorization for the individual who executed the documents to act for the borrower entity.Īfter the preparatory work has been done, an executory process foreclosure lawsuit begins with the filing of a verified petition that includes the original note, authorization, and a certified copy of the mortgage as attachments. Additionally, subject to a few exceptions, the creditor must have the original promissory note or other evidence of debt that is secured by the mortgaged property. Specifically, the mortgage must contain a confession of judgment of the indebtedness and must be in authentic form ( i.e., executed before a notary and two witnesses). While Louisiana does not allow non-judicial foreclosure options for creditors, it does provide a streamlined judicial process known as executory process foreclosure, allowing a creditor to get to a sale of the property within 75-120 days of filing the petition, in most instances.įor a creditor to utilize executory process under Louisiana law, it must possess certain loan documents. In this part two of our discussion of the foreclosure process on commercial real estate in Louisiana, we are demystifying the procedures involved in executory process foreclosures in Louisiana.
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