What is the difference between mortgage foreclosure and lien foreclosure?

In Louisiana, mortgage foreclosure and lien foreclosure are two different types of real estate litigation law. The main difference between these two types of foreclosures is the type of party that is initiating the foreclosure. Mortgage foreclosure is initiated by the lender. This is the most common form of foreclosure and it is used when a borrower fails to make payments on a mortgage loan that they have obtained from a lender. In this situation, the lender is granted the right to take possession of the property and then either resell the property or keep it as an asset. Lien foreclosure is initiated by a lienholder. A lienholder is someone who has a legal claim against a piece of real estate. This claim is usually based on a debt that the owner of the property has failed to pay. The lienholder has the right to foreclose and take possession of the property if the debt is not repaid. Mortgage foreclosures and lien foreclosures can both result in the loss of a property, but the initiating party and the type of debt are two major differences between the two types of foreclosures. In both cases, the homeowner is given notice of the foreclosure action and is given an opportunity to pay off the debt or come to a payment arrangement with the lender or lienholder before the foreclosure is finalized.

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What is the difference between mortgage foreclosure and lien foreclosure?

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