There are two types of foreclosures in New Orleans, the ordinary and executory. Of the two, the executory method is the more common. This method involves what is called an "Authentic Act" which implies that the borrower is in agreement with the obligations set in the mortgage. In a situation where the borrower fails to pay their mortgage the lender is within his rights to enforce the seizure of the borrower's property as a means of recovering the losses incurred due to mortgage default. This method takes three months before the property is finally foreclosed. The ordinary method takes longer to conclude and costs more than the executory method.
All the foreclosures in New Orleans can be found in online foreclosures listings sites. These web sites compile all the data on foreclosed homes across the country in a database that can be searched by location, price or any other conditions. For a minimal subscription fee buyers gain access to some cool tools of the trade usually reserved only for foreclosure experts. Now anyone can be an expert on foreclosures with these web services.
In these online foreclosure sites you can find information on bank auctions being held in the city. Auctions in New Orleans typically sell more than one property and if these homes do not sell, the bank may opt to do another round on auction. The opening bid amount is always provided in the listing so buyers can prepare early on as all auctions are cash sales.
Buyers also have the option of purchasing a home through financing. Many banks and even government agencies like the Housing and Urban Development have inventories of foreclosure homes for sale. Buyers will mostly be dealing with appointed or accredited agents when purchasing properties in this manner. A loan pre-approval document is usually a requirement for buying homes with a mortgage loan as buyers should be able to prove that they have the capability to pay for a home.
Details of the Foreclosure Process
Foreclosures in New Orleans usually become final after three months from the time the notice was sent to the owner and filed with the county courthouse. When the case is opened the borrower has three days to settle the entire amount of their home loan. When the borrower fails to do this the court will instruct the lender to issue an auction notice and advertise the same. The auction takes place within a month from the issuance of the notice.