In Louisiana, it can take as little as six months to foreclose on a property. But because the property does need to go through the court system, you have some time to act. Let’s take a look at what the foreclosure process is in Louisiana and what you can do to avoid the entire situation.
How Does Foreclosure Work in Louisiana?
About 36 to 45 days after you miss a payment, your mortgage servicer will likely contact you regarding your late payments and offer you remedies. These remedies may vary depending on the servicer. They may give you more time to pay, “re-age” your account (add the payments to the back of the loan), or have you refinance the loan.
The lender will be able to start the foreclosure process 120 days after your first missed payment. If there aren’t other provisions within your mortgage contract, the lender will need to go through the courts (which can take about six to nine months). The judge will find you in default and allow the sale of the property.
As with most foreclosures, you have up until the property is sold to reverse the foreclosure by paying the amount due. But the amount due will grow based on legal fees, administrative fees, and interest.
In some mortgage contracts, the lender can instead cure by sale, which means they can sell the property directly rather than trying to go through the courts. But this is rare.
How Can You Stop a Foreclosure in Louisiana?
You can negotiate with the bank to stop a foreclosure. They can often give you options and payment plans. But if you’ve already talked to your lender, and they are requesting full payment, there are a few other things you can consider:
- Asking for a short sale. This lets you sell your property for less than you owe, getting out of the property fast. You won’t be responsible for the difference in the amount you sell for and your mortgage, though you will need to pay taxes on it.
- Selling your property regularly. If you can, selling your property is usually the best way to deal with a foreclosure because it halts the foreclosure process and pays off your debt.
- Declaring bankruptcy. While it’s a big move, declaring bankruptcy will stall all the processes of foreclosure and enable you to dissolve your other debts. Your home and your cars are usually safe when you declare bankruptcy, but it might not be a long-term solution if you can’t afford your property.
Understandably, most people don’t want to declare bankruptcy. It can hurt their credit, but so can the process of foreclosure. If you can’t afford your home, the best option is usually to sell.
How Can You Sell a House Fast in Louisiana?
The best and easiest way to sell a house fast is to sell it to a cash home buyer. A cash home buyer is a company that specializes in buying houses. They have the capital to buy a house without a mortgage. Because a cash home buyer doesn’t have to obey the rules of a mortgage lender, they can buy any house they want.
That includes homes that wouldn’t qualify for a mortgage, such as homes that need substantial repairs or homes that might be too old or ugly.
At Geaux Home Buyers, we purchase homes of any type and in any condition with fast cash offers in Louisiana. The easiest way to deal with a foreclosure is to avoid it altogether. You can sell your house today for cash. Contact us with your address to get a quote and to take the next step in your financial future.