Louisiana at a glance
Checked against the sources cited, 2026-09-19
| Topic | What the law says, and where it says it |
|---|---|
| How foreclosure works here | Louisiana mortgages are enforced through the courts, by ordinary or executory proceedings. In an executory proceeding the lender relies on a mortgage signed as an authentic act containing a confession of judgment to obtain a writ of seizure and sale without first suing to judgment; the sheriff then seizes the property, serves a notice of seizure, advertises the sale and sells the property at a sheriff's sale. In an ordinary proceeding the lender must first obtain a judgment and then execute it. La. C.C.P. arts. 3721, 3722, 3723, 2631, 2721, 2722; La. R.S. 13:3852 Show the source textA conventional mortgage is enforced by ordinary or executory proceedings. |
| Who holds foreclosure surplus | The sheriff who conducts the sale receives the price and distributes it. After deducting costs, the sheriff pays the seizing creditor first, then the inferior security interests, mortgages, liens and privileges on the property, and must pay whatever surplus remains to the debtor. The same rule applies to sales under a writ of seizure and sale in executory process. La. C.C.P. art. 2373; La. C.C.P. art. 2724(A) Show the source textAfter deducting the costs, the sheriff shall first pay the amount due the seizing creditor, then the inferior security interests, mortgages, liens, and privileges on the property sold, and shall pay to the debtor whatever surplus may remain. |
| Claim window for foreclosure surplus | The Code of Civil Procedure articles on sheriff's sales that we read set no deadline for the debtor to collect a surplus. Under Louisiana's unclaimed property act, property held by a court or other public authority is presumed abandoned one year after it becomes distributable, which is when it becomes reportable to the State Treasurer as unclaimed property. La. R.S. 9:154(A)(10) Show the source textProperty held by a court, state or other government, governmental subdivision or agency, public corporation, or other public authority, one year after the property becomes distributable |
| Tax sale excess proceeds | Since January 1, 2026 Louisiana auctions tax liens rather than the property. Bidders compete on the monthly interest rate and the auction price is the face value of the tax lien certificate, so the auction itself produces no excess. After the later of three years from recordation of the certificate or six months after required notices, the holder may sue to enforce the lien, and the property is then sold at a judicial sale. The sheriff pays the certificate holder, other tax lien holders and recorded lienholders, and then each owner according to their interest. Proceeds that cannot be delivered are deposited in the court registry, and surplus not claimed within one year becomes subject to the unclaimed property act. Tax sales held before 2026 are redeemed under the prior law. La. R.S. 47:2154; La. R.S. 47:2266.1; La. R.S. 47:2267; La. R.S. 47:2241.1 Show the source textIf the surplus proceeds are not claimed within one year, they shall be subject to the Uniform Unclaimed Property Act of 1997, R.S. 9:151 et seq. |
| Redemption after the sale | The Code of Civil Procedure provides no redemption period after a sheriff's sale in a mortgage foreclosure. The owner can prevent the sale at any time before the adjudication by paying the sheriff the debt with interest and costs. Once the property is adjudicated, the sale transfers all of the debtor's rights in the property to the purchaser. La. C.C.P. art. 2371; La. C.C.P. art. 2340; La. C.C.P. art. 2724(A) Show the source textThe adjudication transfers to the purchaser all the rights and claims of the judgment debtor as completely as if the judgment debtor had sold the property. |
| Rules for recovery companies | An owner's agreement to pay someone to locate or recover property that is presumed abandoned is void if it was signed between the date the property was presumed abandoned and 24 months after the property was paid or delivered to the state's unclaimed property administrator. Any such agreement is enforceable only if it is in writing, clearly describes the property and the services, is signed by the apparent owner, and states the value of the property before and after the fee. A fiduciary agent, which the act limits to Louisiana licensed attorneys, certified public accountants and financial advisors, may be paid no more than ten percent of the total claim value and must submit a notarized payment request signed by the owner with the claim. A court may reduce compensation that is unconscionable. La. R.S. 9:177; La. R.S. 9:153(10) Show the source textFor his services, a fiduciary agent shall be entitled to compensation of an amount not to exceed ten percent of the total claim value. |
How surplus funds arise in Louisiana
When a home in Louisiana is sold at a foreclosure sale or a tax sale for more than the debt and the costs of the sale, the money left over is surplus funds, also called excess proceeds or overage. It does not belong to the lender or to the buyer. Liens recorded behind the foreclosed debt are paid first, and what remains belongs to the former owner or to the owner's heirs. Read surplus funds explained for the general rules and liens and competing claims for the order of payment.
How a claim moves in Louisiana
We confirm the sale figures in the public record, identify which office in Louisiana is holding the money, and prepare and file the claim the way that office requires, advancing the costs. Because we bring the whole record with us, the claim does not stall on a missing document, a competing name or a missed date. See how to qualify for what we handle and what you provide. Notices about surplus are usually mailed to the last address on record, which is often the home that was sold, so do not wait for a letter. In Louisiana that program is the Louisiana Treasury Department Unclaimed Property Division (Louisiana State Treasurer).
If the owner has died
The right to the money belongs to the estate. Depending on the size of the estate, Louisiana law may allow a simplified procedure, or a probate court may need to appoint a personal representative. See estate and heir recovery and probate assistance.
Working with a recovery company in Louisiana
Louisiana regulates this kind of service. An owner's agreement to pay someone to locate or recover property that is presumed abandoned is void if it was signed between the date the property was presumed abandoned and 24 months after the property was paid or delivered to the state's unclaimed property administrator. Any such agreement is enforceable only if it is in writing, clearly describes the property and the services, is signed by the apparent owner, and states the value of the property before and after the fee. A fiduciary agent, which the act limits to Louisiana licensed attorneys, certified public accountants and financial advisors, may be paid no more than ten percent of the total claim value and must submit a notarized payment request signed by the owner with the claim. A court may reduce compensation that is unconscionable. (La. R.S. 9:177; La. R.S. 9:153(10))
Any agreement you sign, with us or with anyone else, has to follow that rule.
No out-of-pocket expense. Our only payment is a completion fee taken from the surplus once it is recovered. Where your state requires a licensed attorney for a court or probate filing, a licensed attorney handles it, and you still pay nothing out of pocket. Before you sign with anyone, read what a surplus funds scam looks like.
Questions about surplus funds in Louisiana
Enough to prove who you are and how you held the property: identification, the deeds, any notice you received, and, if the owner has died, the estate paperwork. We do the rest for Louisiana, from locating the funds to filing the claim.
The sheriff who conducts the sale receives the price and distributes it. After deducting costs, the sheriff pays the seizing creditor first, then the inferior security interests, mortgages, liens and privileges on the property, and must pay whatever surplus remains to the debtor. The same rule applies to sales under a writ of seizure and sale in executory process.
No out-of-pocket expense. We advance the costs and are paid a completion fee from the surplus only after it is recovered. Where a court or probate filing requires a licensed attorney, a licensed attorney handles it.