2.1 What Is Foreclosure?

Foreclosure is the legal procedure employed by a creditor to seize property belonging to a debtor or guarantor and sell it at public auction in order to collect what is due the creditor on a defaulted promissory note.

Louisiana is a judicial foreclosure state. A creditor must go to court in order to foreclose a mortgage. Foreclosure is accomplished by either ordinary or executory process. Ordinary process is a proceeding against the individual debtor on the promissory note; executory process is a proceeding in rem against the collateral that has been mortgaged.

This chapter is about foreclosure defense and reversal; it does not address foreclosure prevention or avoidance. In almost all such situations, a potential client who is not yet a defendant in a state court foreclosure lawsuit should be referred to a HUD foreclosure counselor1  and should also be advised to strongly consider Chapter 13 bankruptcy.

• 1Pre-foreclosure counselors may be located here. Foreclosure assistance and advice may also be obtained by calling 888-995-HOPE (4673). HUD counseling is free, although it should not be considered a substitute for active attorney involvement in the client’s case.