Foreclosure on Real Property

Foreclosure is the legal process by which a mortgagee, or other lien holder, usually a lender, obtains a termination of a mortgagor's equitable right of redemption, either by court order or by operation of law. Foreclosure is declared by a person or company who owns the property; The parish or county auction off the property to the highest biter. There are two types of judicial foreclosure proceedings in Louisiana, executory and ordinary process. The executory process takes place when the lender uses a mortgage that includes an "authentic act that imparts a confession of judgment", as provided in the Louisiana statutes. Essentially, this means the borrower signed and acknowledged the obligations of the mortgage in the presence of a notary public and two witnesses. This type of mortgage makes the foreclosure process easier for the lender because once the suit has been filed and the original note and a certified copy of the mortgage has been provided, the court will issue an order for the process to begin. The process of foreclosure, the lender seeks to foreclose the equitable right of redemption and take both legal and equitable title to the property in fee simple. There are several types of lien holders, such as, trustee, mortgage, and land closure. Unlike with a mortgage, if it is a land sale contract the mortgagor doesn’t have the option of buying the property back. In the In a Trustee the buyer has 180 days to pay and gain the right of redemption. In an auction usually the lender starts off the price as the remaining balance. [continues]

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