Why is the Louisiana foreclosure process so fast?
Louisiana is what’s known as a Title Theory state, where the property title remains in the hands of the lender until the underlying loan is paid in full. When a person buys real estate in Louisiana with funds borrowed from a lending organization or party, the loan — also called a mortgage — is established by two legal instruments: a promissory note or “promise to pay”, and some type of title security document. The mortgage creates a lien on the property in favor of the lender. In Louisiana this usually takes the form of a security deed conveying title over the property to the lender, though the borrower retains all the usual rights of ownership as long as the repayment terms are being met. If payments are not made as stipulated, the lender may foreclose.
