Foreclosure is the legal process effected through the court system in which a mortgagee (lender—often a bank) terminates a mortgagor’s (borrower’s) interest in the real property in which the mortgagor gave the mortgagee a security interest (a lien) as collateral for the loan used to purchase the property.

Foreclosure generally occurs when a homeowner defaults and fails to make mortgage payments as required by the loan agreement (promissory note).

Foreclosure allows the lender to seize the property, remove the homeowner, and sell the home—all of which are legal remedies the mortgagor and mortgagee agreed to in the mortgage contract.

In Louisiana, foreclosure is a legal process that allows a lender to terminate a borrower's interest in a property due to the borrower's failure to make the required mortgage payments. Louisiana primarily uses the judicial foreclosure process, which means the lender must go through the state courts to foreclose on a property. The process begins when the lender files a lawsuit against the borrower after a default on the mortgage. If the court rules in favor of the lender, the property can be sold at auction. The proceeds from the sale are used to pay off the mortgage debt, and any remaining amount is returned to the borrower. Louisiana law also allows for executory proceedings, which is a faster process where the property can be sold without a lawsuit if the mortgage agreement includes a 'confession of judgment' clause. Borrowers in Louisiana are entitled to a notice of default and an opportunity to cure the default before the foreclosure process can proceed.