Louisiana passed a bill amending the methods of enforcing mortgage related to the judicial foreclosure process. Under the bill, in any ordinary or executory proceeding to enforce a promissory note or other debt instrument combined with a conventional mortgage or other security device, the judgment or order of executory process granted may include any amounts which accrue after the rendition of the judgment or order, including until the collateral is sold by judicial process pursuant to the provisions of the promissory note, debt interest, or security device, including obligations to reimburse advances for taxes and insurance, inspection, or other fees provided for by contract, reasonable attorney fees, and court costs. In addition, the bill added that prior to the date of the foreclosure sale, the seizing lender or the seizing lender’s counsel must file into the record the payoff amount of the conventional mortgage being enforced, including any amounts which have accrued after the filing of the petition, or rendition of the judgment or order in the case of ordinary process. If the servicer files a ruling to show cause to traverse the payoff amount filed, the rule to show cause must be filed before the sheriff disburses any funds from the judicial sale pursuant to the writ being executed. The bill becomes effective August 1, 2025.

Click to view the Louisiana HB 178: https://www.tenaco.com/wp-content/uploads/2025/07/LA-HB-178-06-19-25.pdf