Foreclosure Problems Are Rising Across Louisiana

本站添加: 2026-06-02

[00:00:01]Three things are happening right now in regards to Louisiana with mortgages and pre-forclosure that we need to talk about. Now, first of all, we have one of the highest percentages in the country for mortgages that are 90 plus days past due. Additionally, we have one of the highest percentages for the amount of underwater mortgages. So, properties that are upside down throughout the country. And then the last one is we have the longest timeline for forclosure in the nation right now. Guys, these statistics, these facts, we're going to get into it. I don't want to hype you up, but man, what the heck is happening underneath the surface in Louisiana housing market right now. As someone who stopped foreclosures for over a decade, I want to dive into it and not just be like um, you know, click baity. I want to talk about the data because that is what is important. Let's jump into it.

[00:00:55]All right, folks. Before we get into what all of this means for Louisiana, let's start off by just introducing who we are, Steve, if you don't mind introducing yourself, telling folks who you are and what your experiences.

[00:01:08]>> For sure. So, uh, I'm Steven Kiri. Most people in this area know me as Aussie Steve. Uh, I'm a founder at Home by Louisiana. So, we deal with, uh, distressed offmarket properties, uh, you know, through through most of Louisiana.

[00:01:20]Um, so yeah, we're acquiring, we're wholesaling, we got rentals and and just really um acquiring and speaking to sellers that have properties that have issues. So we're doing this day in day out around Louisiana.

[00:01:31]>> Yeah. Excellent. And my name guys is Courtney Fricky. I am um predominantly I consider myself a solutionsbased investor, but I have stopped foreclosures for over the last decade in the greater New Orleans area. And this has been something that pretty much from day one um in my my career I have focused on. So I'm looking forward to getting into the nitty-gritty having stopped over um significant amount of foreclosures over that time. I've seen a lot of different scenarios uh especially in southeast Louisiana. So I want to kind of dig into what that looks like.

[00:02:08]Um, but many of you guys know from my background between um, educating real estate agents as well as uh, educating the public through being on WWL radio for years as a live in call show for the uh, for the community, but then also having founded and educated through Northshore Real Estate Investors Association. So, without further ado, let's kind of jump into everything that is going on. We're going to talk about some data, but we're also going to talk about some real life case studies of, you know, what we're seeing just um talking about what we're seeing out there in the field. So, I came across an article that consumer affairs put out which talked about basically personal debt burdens by state and it's this idea that, you know, people are feeling squeezed and it stated that Louisiana was the second top state that had burdens and specifically it said in Louisiana 1.8 83% of outstanding mortgage balances are 90 or more days past due which is the highest rate in the US and nearly double the national figure. So putting a lot of emphasis on our mortgage uh debt that is struggling and now it's not the only debt right because there's people have other types right they have credit cards they have cars you know things along those lines uh but ultimately we had the highest overall score for delinquency ranking the worst of five states across each of the other key categories which again credit cards student loans car loans stuff like that and ultimately what makes it difficult is we have one of the lowest per capita incomes in the country.

[00:03:48]Basically, a lot of folks are struggling to be making more money right now where they're feeling tied and pressed. And so, Steve, what did you think about that article when it came out? What are your thoughts here?

[00:04:01]>> Yeah, I mean, it's not a surprise. Um, cuz it's not it's been like that for a few years, so it's not like the it's not spiking so much like it's been like that. um particularly the like the indebtedness um 90day plus is moving a little is moving um you know but um yeah I mean the debt per capita is 48,250 and the income per capita is 35,440 right so that's 136% debt to income ratio so I think that's really where the burden is and I think that's why Louisiana is affected more than other people because it doesn't have the cushion like a lot of other states have high income so they got cushions um you and I both know we deal with a lot of sellers that like have really been struggling dealing with insurance payments. That's been a real problem for Louisiana homeowners. It's been a problem for us as rental owners, like you know, um dealing with insurance. So, the burden's high, so it's it's not it's not a surprise. Um you know, and and we we speak to sellers like this all day.

[00:04:57]So, you know, uh it's really confirmation of what we're seeing out in the market.

[00:05:01]>> Yeah, for sure. And now, let's keep in mind that this is statewide. So throughout the state both the uh averages of the income uh and the debt as well as other factors. So let's just keep in mind it is state throughout the state. Um one of the other things that when I did some more research because I was like let me look at the data because I am often dealing with what we would call um you know the data is more macro right big picture but the I did a lot in the micro which is sitting across the table from people and talking to them.

[00:05:34]So, I can speak on that all day long, which we will today talk about that. Um, but I also want to bring in some of that data. You know, Louisiana actually had something another figure that was actually surprising to me, which I I I didn't quite expect this, but Louisiana has the longest foreclosure timelines in America currently.

[00:05:55]>> Sold out.

[00:05:56]>> Yeah. So, um, Adam, which is atom, which is one of the sources for data that I really enjoy, uh, getting this information from, in their Q1 2026 foreclosure market report that they put out, they said that Louisiana average foreclosure timeline was 3,140 days.

[00:06:15]Like, that is significant. Um, and I actually am personally wanting to dive into more of why is it taking that long?

[00:06:24]and I have some sneaking suspicions of what it's tied to and know that. Okay, so that's over 3,000 days. The national average is 577 days. So that's a huge difference, right? So keep in mind that is something that what are some of the unintended you know consequences of something like that? That's one of the things that I pay attention to. Uh does it make lenders a little bit nervous?

[00:06:53]you know, to maybe start lending in this market. Like, what do those things look like? Um, ultimately, because they're the foreclosure process is taking five times longer than the national average.

[00:07:03]Something to pay attention to. Are you are you just seeing that as a legal thing, Courtney? Cuz cuz um you know, I mean, that that was surprising to me as well. I definitely I definitely saw that. Um and you got some suspicions.

[00:07:15]Like, what are those suspicions? Cuz it it does I mean it doesn't seem to be it's not really a legal thing from my perspective um that you legally can't close in that time. So there's obviously some decisions being made, you know, by lenders and the likes or or how do you see that?

[00:07:29]>> So my number one guess, and I agree, it's not how long it takes to foreclose in Louisiana because I believe there's other states that because of their judicial foreclosure process, it does take longer than normally in Louisiana.

[00:07:46]I don't believe it's that. I believe it's kind of the perfect storm of everything going on. We have had hurricanes in recent years, right? A significant amount of them.

[00:07:56]>> Yeah.

[00:07:56]>> Um not only just hurricanes, but we've had tornadoes. We've had, you know, various weather events. And we have also had the rising historic insurance crisis that we've faced. You mentioned it earlier. Pretty much 20 since 2020, we've had a lot happen in Louisiana. And especially on those fronts. There's actually been studies done. Access AXIOS um is another one of those sources for data and they actually did one they reported that Louisiana, Florida and California are projected to account for 53% of climate related mortgage losses nationally. And where they're talking about mortgage losses, it's basically a loss due to, you know, defaults and stuff like that. And a huge part to that is obviously hurricane exposure, flood exposure like and all those things.

[00:08:56]There's also been litigation. So we also have a level of that at the state level.

[00:09:00]Uh and then the rising reinsurance costs that we're seeing alto together. Um I think that's been one of the biggest ones. So going to the delay because we have this um what they're calling climate related issues.

[00:09:15]I think that they've been giving people a lot of time like um like a lot of work. So So when someone's facing foreclosure, the banks will often offer some reprieve um whether it's a loan modification or you know just generally I I I've seen people get a level of these workarounds again loan modifications, forbearances and I have been since co I've been a like it's been crazy to see what banks have been agreeing to.

[00:09:45]>> Yeah. Um, I mean, I've frequently come across people who are 300 or 500 days behind on their last payment. And I don't want to say frequently, it's not like every other, but you know, we're seeing stuff like that. And again, so I think during this time that the banks have been being more lenient because of all these things happening again, the storms. Um, they're they're wanting to try to work it out. Um, but Steve, I don't know if you saw this, but this was on May 3rd, so just a few days ago, um, in May 3rd, 2026 on the Wall Street Journal, basically this article, I I read it and I said, "Man, this is going to be interesting."

[00:10:24]It talks about how the federal housing handout has ended and foreclosures will follow, which talking about all of those loan modifications that came out. Most people don't know this, but especially during COVID and and various things, when people got behind on their mortgage, the government was quietly bailing out average citizens by taking the amount they were behind, let's just call it 20,000. You know, they get behind on their payment, let's just say, you know, their payment is uh $2,000 a month.

[00:10:54]They're five um let's just say they're 10 payments behind. And so it's 20,000.

[00:10:59]And the workaround that the bank gave them was, let's take that 20,000, put it in a second mortgage at 0% interest, no payments due. You just have to pay it off when you pay off your first mortgage. And you know, when you sell, refinance, something like that.

[00:11:14]>> And I saw so many of those happen, these these seconds that um again, a lot of them were done through HUD, uh government-based. See, one time I saw someone have four of them on one property. Yeah, >> that is crazy.

[00:11:30]>> That is crazy. I I've seen a lot of them, too. Um I haven't seen four.

[00:11:34]That's that's insane. But they're definitely they're definitely prevalent out there. Um you know, I I do think I mean I think banks so part of it that that that's like looking to FHA, right, Fanny Freddy? So they're they're providing some assistance and that that all stops. So that's going to increase the foreclosures. I do think that banks are more lenient since the financial crisis, but uh I don't I don't think it's because they're like bleeding hearts kind people. Shock horror, right?

[00:12:00]I do think they learn a commercial lesson like a business lesson from the the foreclosure crisis. Like when they in 2008, 910 foreclosure on properties, they that was like bad for them in the market. Like I think there is some strategy. I think they are more willing to work with people cuz it does make sense. And it is true that when they work these things out, a bunch of people are going to get back in trouble again.

[00:12:21]That is true. But I know from a business point of view, there's a conversion rate, right? So you you put this many people on this forbearance program. If 50% of them end up doing well, like that's good. So even if 50% fall off and then you need to work through, it's still like a commercial. I can see the commercial banks. I think they're being I think it's a business approach rather than a nice approach um to being more lenient. And I think that makes sense. I think it's helpful for the sellers, for the so for the owners, you know what I mean? It's it's helpful for the banks, it's helpful for the economy. So, I I do think that's like going to be a trend.

[00:12:52]Um, but don't don't get me wrong, foreclosures after co are crazy low.

[00:12:57]Like we they're all the numbers are increasing because the numbers are so low and they're not to be honest.

[00:13:02]They're going up by a high percentage, but they're off such a low base. They're really just creeping back to normal. And we have had a brief break in foreclosures and they're coming back.

[00:13:10]I'm getting phone calls. I know you're getting phone calls. like it's it's coming and it will increase. Um but I I personally I don't see it being like a crazy foreclosure crisis. I just see it being a lot more foreclosures in the market which is pretty normal to happen.

[00:13:26]>> Yeah. And I speak I'm going to speak to some of that with the data. Um so national foreclosure filings like you said during COVID they were really hauling like holding off on that as much as they could and so it was historically low. So the increases that we're seeing again the numbers sound very high but it's because they were so low that they're getting up to more a normal again it feels drastic. Uh but yearover-year so from Q1 2025 to Q1 2026 it's a 26% increase. Again you want to go look at charts and graphs with this to get a better picture. Again um I like atom.

[00:14:08]They're one of the reporting sources I like. Uh to give you an idea, in Q1 of 26 there was 93,953 US properties had foreclosure filings.

[00:14:18]And so ultimately there's various areas especially lower income areas where they're more at risk. And I do think the more climate like areas that are more climate risk I think have u because people are being squeezed on that monthly payment which includes property taxes and insurance. So those are things we're paying attention to. Last um thing I want to point out here and then we can wrap up is that um Adam also mentioned that nearly 12% of Louisiana mortgages are seriously underwater. And what that means um is at least 25% more than what the property is worth is what they owe. And so so what does that equal? Short sales. I mean we talked about this for a while. I think short sales are coming back. We're seeing them frequently um pop up more than we have even probably I think in the last 24 months I've seen short sales start to increase. Um, but now it I would say in 2026 I'm I'm hearing about and I'm seeing and witnessing uh short sales more frequently. What are you seeing on your side with that?

[00:15:25]>> Yeah. Yeah. Um, we've done some short sales recently and I'm seeing more people that like that's what's required because they're Yeah. They're owing more than the than the properties were worth.

[00:15:35]Particularly if they're bought in the last couple years cuz there hasn't been growth and if there's like if they're not in great shape, it's really common for them to be underwater. So, so we're definitely seeing a lot of that. Um, I do want to also just rift on your like the 26% increase in um in foreclosures is huge. Like 27 is huge as a number.

[00:15:55]Um, but to go I want to go I got the Louisiana data too from from Adam. So Louisiana in March had 720 foreclosure filings, right? So which is >> for the entire state >> for the entire state. So, so the stat is that's 1 in 2,929 houses are facing foreclosure. So, so the increases are huge because it's like coming off like nothing, you know what I mean? Like slowly rise up nothing. So, the numbers aren't crazy, but like like you said, co in the beginning, you talked about like micro, there's like a macro picture and then there's like across the table household picture. So, I do think macro level like foreclosures are increasing, but it's just normal.

[00:16:32]It's nothing that's going to crash a housing market. There's nothing that's like like that. But micro level, yeah, these are real people that are strained.

[00:16:40]Like those that whole um debt per person, income per person, that's a real strain that Louisianans have. So like in that I'm saying macro is not so bad. It doesn't take away that like for a portion of people it is bad and it's tough. And it's like they're one like AC going out like away from like going from stress to I can't make payments.

[00:17:01]>> I mean the AC going out, their car having issues. um their insurance going up again, right? We've been seeing some reprieve on that, but not everyone. Um, you know, any little thing or, you know, missing a paycheck or their paycheck coming down some. Um, any little hiccup, people are so squeezed. Uh, so if you're a landlord, you want to be thinking a lot about, you know, what does that look like? Because, for example, um, going up on someone's rent at renewal, what does that look like, right? Um, what does it look like? In general, if you're an investor, um, I always believe working with folks facing foreclosure, if you're dealing with someone before they face foreclosure, you should absolutely, um, learn what that process looks like and not hurt the person standing in front of you because you don't know what you're doing. Uh, learning to buy at an auction takes effort, uh, and it takes knowledge. Um, and then buying AROS's, bank-owned properties, um, that is, you know, a skill set in itself. and then short sales. So, I'm gonna actually put some resources down below uh the Louisiana foreclosure process. So, I'm going to put a video on that in the comments below u well in the show notes below as well as um buying from the auction. This one's going to be St. Tammy Parish, which I believe is one of the golden standards throughout the entire state for the buying at the foreclosure auction. I'm going to put link some of those videos in the show notes below so that you can be informed.

[00:18:25]Um, lastly, I'm going to say this is that we're seeing some squeezes here, but I I truly believe these low interest rates that we historically had for 10 years. We had historically low interest rates and then obviously the refi boom, a lot of people were purchasing in 2021 with those low two, three, 4% loans. I really believe that has bought us a level of um wiggle room, per se, for this difficult time because that's making people's monthly payment just that much smaller because it's made up for some of those increases that we're seeing. And I think that's really just, you know, I don't know, bought us some some time, per se.

[00:19:08]doesn't mean it saved folks entirely, but uh I I still think that that has been one of the saving graces in this time where things could have been worse.

[00:19:17]Um but those low interest rates have really helped people kind of tread water um per se. So, uh any final thoughts, Steve? Ju ju just just I mean people in foreclosure that those resources you shared is great. You know, I I feel for people that are doing tough out there.

[00:19:34]Um, you know, I I do I will say to investors, prepare to see more headlines about foreclosures. Uh, I would say don't fall for the head fakes or the 26% increases if they're if they're pitching them as like the the the world is falling in. Don't fall for it. Um, but there is a lot of pain out there. If you're an investor, that does mean opportunities. If you can help people, you know, there's deals, you know, that that you can transact on. Um, but it's going to get worse. I'm personally hoping that, you know, we start to see some of the economic development come through and help increase that that average um income because I do think that's what's really holding Louisiana back. And if that average income can increase, that's going to create a lot more cushion. So, I'm I'm hoping that will happen. And, you know, but just feeling for anyone that's doing it tough cuz, you know, it's tough right now.

[00:20:15]>> It is tough out there. Uh my last little bit here is going to be if you find yourself struggling with making your payments, maybe you're an investor yourself and you've been struggling, maybe some of your properties have been cash flow negative for a while, feel free reach out to me. My information is in the show notes below. Let's chat. I generally work the s, you know, southeast Louisiana area. Uh but but let's chat. I I want you to be able to find some solutions, some some ideas, some options, and then ultimately um I'm going to encourage anyone who is pressed right now. Just keep swimming, right?

[00:20:50]Real estate is one of those things where it does not last forever. Things can eventually get better. Can you find a way to keep swimming? We're cheering you on. Steve, how do people get in touch with you? Uh, home buyer.com is my website and you can find me on social, Stephen Kiri on on all the social platforms.

[00:21:08]>> All his info is in the show notes below as is mine. This is Louisiana Real Estate Talks. Just another episode helping you get more information about the Louisiana real estate markets. Make sure if you haven't already, subscribe, hit the like button, and we'll see you next episode.