In Louisiana, when a 2nd lienholder forecloses on a house, do they get paid first, subject to paying the 1st?

Question

In most states, when the 2nd lienholder gets paid first if they are the originator of the foreclosure. I am trying to see if there are any tricky foreclosure laws in Louisiana. I have the ability to buy a non-performing 2nd lien and foreclosure might be something I have to do as a last resort. Can you tell me exactly the payout procedure or a website that describes the procedure? Most websites do not have that level of detail.

Answer 1

If you foreclose on a 2nd lien, you assume the obligation of the first lien. If you don't, the first lienholder will foreclose on YOU.

And if you're the 2nd leinholder and the 1st leinhlolder forecloses, YOU LOSE.

Answer 2

unless the 2nd lien is privileged in some way then when the second lien holder forcloses the first lein holder is given notice (this has to be done under Mennonite) and usually the first lein holder will intervene in the foreclosure and assert his right. The rules for this can be found in the LA Code of Civil Procedure.

Answer 3

Second position will be obligated to the first position of the loan. If a second position lien holder forecloses, they are obligated to satisfy the first lien.

When you sell, all liens must be paid or the title is not clear. The buyer will most likely not accept an encumbered title