A lender in Shreveport initiates foreclosure proceedings after a borrower defaults on a mortgage secured by immovable property. The borrower's attorney argues that the lender must go through the court system. Which of the following statements most accurately describes Louisiana's foreclosure process?
Correct Answer
D) Louisiana requires judicial foreclosure through the district court, making it a court-supervised process
Louisiana is a judicial foreclosure state. Because Louisiana uses a mortgage (not a deed of trust) as its primary security instrument, there is no power-of-sale clause transferring title to a trustee. Foreclosure must proceed through the district court via an executory or ordinary proceeding. The executory process (La. Code Civ. Proc. Art. 2631 et seq.) is the most common method, allowing a creditor with an authentic act mortgage to obtain a court order for seizure and sale without a full trial, but it still requires court involvement.
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Related Topics & Key Terms
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Related Concepts
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