If you miss a payment on your Louisiana mortgage, the servicer (on behalf of the loan owner, referred to as the “lender” in this article) will start the foreclosure process. It’ll very certainly be an “executory procedure.” This process enables a lender to seize and sell a house without going through the formalities involved in a court foreclosure.
In Louisiana, ordinary judicial foreclosures are also possible, although they are not as prevalent. This page focuses on the executory foreclosure procedure, the most common kind of foreclosure in the state.
Louisiana Mortgage Loans
You’ll probably sign two papers if you acquire a loan to purchase residential real estate in Louisiana: a promissory note and a mortgage. The promissory letter is a legal document that includes your pledge to repay the debt as well as the conditions of repayment. A confession of judgment will almost certainly be included in the mortgage, which provides the lender a security interest in the property (see below). If you don’t make the payments, the lender has the power to seize and sell your house to reclaim the money it lent you.
What Happens if You Don’t Pay Your Mortgage?
After the grace period ends, the service might charge you a late fee if you skip a payment. Most Eviction Baton Rouge mortgage loans, for example, allow you a 10 to a fifteen-day grace period before you’re charged late fees. Review your promissory note or monthly billing statement to determine the grace period and amount of the late monthly charge in your scenario.
If you miss a few mortgage payments, the servicer will most likely send you letters and make phone calls to collect the late fees. Federal mortgage servicing laws require the servicer to contact you (or attempt to contact you) by phone no later than 36 days after a missed payment to discuss foreclosure alternatives, also known as “loss mitigation” options, and to contact you again within 36 days after each subsequent missed payment. After 45 days of a missing payment about possible loss mitigation measures, the servicer shall notify you in writing and send staff to assist you.
Louisiana’s State Laws on Foreclosure
An executory procedure in Eviction Baton Rouge is the most typical kind of foreclosure in Louisiana. When the borrower accepts in the loan papers that the lender may get a judgment if the borrower defaults, this sort of foreclosure is conceivable. A “confession of judgment” provision in a mortgage is what it’s called.
As a result, if the borrower defaults, the lender files a foreclosure petition in court, attaching the mortgage, and the court orders the property to be seized and auctioned. The only way to stop a foreclosure is to file an appeal or a
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