Liens & Encumbrances in Louisiana Judicial Sales: What Investors Need to Know

Buying a property at a judicial foreclosure sale in Louisiana can be a great investment—but only if you understand what you're getting into. One of the biggest pitfalls new investors face is failing to account for liens and encumbrances that may survive the sale. Before you bid, here’s what you need to know.

Which Liens Get Wiped Out?

In most cases, junior liens (like second mortgages, judgment liens, and unpaid contractor debts) are cleared when the Sheriff's deed is issued. This means you won’t be responsible for those debts. However, not all liens are eliminated.

Which Liens Survive the Sale?

Certain superior liens may remain attached to the property even after a judicial sale, including:

✅ Unpaid property taxes – These take priority over nearly all other debts.

✅ IRS tax liens – The IRS has a 120-day redemption period to reclaim the property.

✅ Homeowners Association (HOA) liens – Some HOA fees may survive, depending on the association’s bylaws.

✅ Municipal liens & code enforcement fines – These may stay with the property, depending on the circumstances.

How to Protect Yourself

💡 Research Before You Bid – Conduct a title review or hire a professional to check for outstanding liens.

💡 Factor Liens Into Your Budget – Winning a property for a low price doesn’t mean it’s a deal if hidden liens add unexpected costs.

💡 Know Your Exit Strategy – Some liens may prevent you from getting title insurance or reselling the property without clearing them first.

Judicial sales can be lucrative—but only if you know what you're buying. Want to ensure you're making a sound investment? Contact my office today for a lien review or consultation before you bid.