Louisiana situation guide · Updated November 2026

Wholesaling REO Bank-Owned Properties in Louisiana

Wholesaling REO bank-owned properties in Louisiana means getting a lender’s foreclosed house under contract in a city like New Orleans and assigning that contract to a cash buyer for a fee. Louisiana now has a wholesaling statute, Act 807 of 2026 (reported as effective August 1, 2026; confirm on legis.la.gov), for one-to-four unit homes. Read it before you put your first bank offer in writing.

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The short answer

Can you wholesale REO bank-owned properties in Louisiana?

Yes, but the contract is regulated. For one-to-four unit homes, Act 807 of 2026 requires written disclosure of your intent to assign, a cancellation notice and a deposit of at least 1% of the price. Check current text of R.S. 37:1448.5 or ask a Louisiana attorney before you sign.

An REO is a house the lender took back after a foreclosure sale and now sells through an asset manager or a listing broker. In Louisiana the lender gets there through executory process or ordinary process, both run through the parish court. The bank is a motivated seller, but it moves slowly and uses its own forms. Our REO guide explains how those desks work.

Banks rarely negotiate on paper, so wholesalers win on speed and certainty. A clean cash offer with proof of funds beats a financed one. Expect the asset manager to ask whether you can close in your own name. Our assignment guide covers what an assignment clause must say before you put it in front of a lender.

REO Bank-Owned Properties in Louisiana at a glance

Governing law	Act 807 of 2026 (HB 468), R.S. 37:1448.5, for 1-4 unit homes
Reported effective date	Confirm on legis.la.gov
Seller type	Lender or its asset manager
Minimum deposit	At least 1% of the price, held in escrow
Cancellation right	Five calendar days under the Act
Disclosure forms	Seller property disclosure under R.S. 9:3196-3198; lenders often sell as-is

The opportunity

Why New Orleans bank-owned homes work for wholesalers

Orleans Parish has older shotgun houses and cottages in Gentilly, the 7th Ward, Central City and New Orleans East. When a lender takes one back, the house has often sat empty through a few wet summers. Price points vary widely, so check recent sales before you quote anything. Buyers there chase rehabs and rentals, and many will pay a fee to skip the listing chase. Pull comps block by block, because one street can sit in a different flood-zone class than the next.

Slow desks

Asset managers batch their listings. A buyer-ready wholesaler gets a quick reply.

Repair gaps

Lenders often price off a broker’s opinion, so a repair bid can open room.

Cash certainty

Proof of funds and a short close are worth more than a high bid.

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Lead sources

Where to find REO leads in Orleans Parish

Listing portals. Search for bank-owned and lender-listed homes on the public portals.
Asset-manager sites. Many servicers post their REO inventory on their own pages.
Sheriff sale results. Orleans Civil Sheriff sales show which lenders just took title.
Local brokers. Agents who list for lenders know when a house is about to come to market. See our auction guide.
Vacant-house drives. Drive Gentilly and the East for boarded homes with a lender sign. Our driving guide shows the routine.

Your exit

Who buys lender-owned houses in New Orleans

Local rehabbers and landlords buy most bank-owned inventory. They want a clear scope, a fast close and an as-is price that leaves room for repairs and insurance.

Send them the lender’s terms, your fee and the closing date up front. Build a list through our cash buyer guide and match each house to a buy box before you call.

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Step by step

How to start wholesaling REO bank-owned properties in Louisiana

Find the listing. Confirm the lender, the asset manager and the listing broker.
Verify the status. Check the parish records to confirm the lender holds title.
Estimate repairs. Walk the house or use our repair cost guide.
Run the numbers. Use the ARV calculator and the MAO calculator.
Disclose in writing. Add the Act 807 disclosures and cancellation notice, and ask your attorney how they fit a lender seller.
Market the contract. Remember that marketing the contract rights creates a presumption of wholesaling.
Close with title. Use an investor-friendly title company and confirm how funds flow.

Your checklist for wholesaling REO Bank-Owned Properties in Louisiana

Confirm the house is 1-4 units so Act 807 applies.
Put the intent-to-assign disclosure on the first page.
Attach the LREC cancellation form with the contract.
Fund the escrow deposit of at least 1% of the price.
Ask the lender’s rules on assignment before you offer.

A Louisiana example: a Gentilly house the lender took back

Lender ask	$172,000
Your contract price	$158,000
Escrow deposit (1%)	$1,580
Estimated repairs	$38,000
Buyer pays you	$171,500
Assignment fee	$13,500

A New Orleans lender listed a two-bedroom Gentilly house at $172,000 after a sheriff sale. It was a worked example of a slow desk. You offered $158,000 cash with a 14-day close and a $1,580 escrow deposit, which is 1% of the price.

Before signing, you gave the asset manager the written disclosures and the cancellation form, and kept proof of the delivery. The estimate for roof and wiring work was $38,000.

A local rehabber agreed to pay $171,500 for your contract rights. You kept $13,500 as your fee, and the buyer closed in the buyer’s own name. The lender received the full $158,000.

Louisiana rules to know

Act 807, lender sellers and seller disclosure forms

Act 807 of 2026 added R.S. 37:1431(35)-(37) and R.S. 37:1448.5 to the Louisiana Real Estate License Law. It covers one-to-four unit homes and, as the Act reads, requires written disclosure before each contract, the statutory notice by the seller’s signature, the LREC cancellation form and an escrowed deposit of at least 1%. Read the current text.

A lender may use its own forms and may sell as-is. Seller disclosure under R.S. 9:3196-3198 uses LREC forms, but exemptions for foreclosure sellers are something to confirm. Ask counsel whether the Act’s notices should still go on a bank contract. A missing disclosure can make the contract voidable until title transfers. See our legality guide.

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FAQ

REO Bank-Owned Properties in Louisiana: common questions

Is wholesaling REO bank-owned properties in Louisiana legal?

Yes, with limits. For one-to-four unit homes, Act 807 of 2026 sets disclosure, cancellation and deposit rules. Broker license rules in R.S. 37:1431 and 37:1459 can also apply. Check current text and ask a Louisiana attorney or the Louisiana Real Estate Commission before you offer.

Do banks allow assignment of REO contracts?

Many lenders restrict or bar assignments in their own addenda. Read the lender’s contract before you offer, and ask the asset manager directly. If assignment is barred, a double close may be the only route, and Act 807 can treat certain simultaneous closings as wholesaling too.

Does the Act 807 cancellation right apply to a bank seller?

The Act as read does not say whether an institutional seller is treated differently. It gives the seller five calendar days to cancel and requires the statutory notice. Ask a Louisiana attorney whether to include them on a lender contract, because a missing disclosure can make the contract voidable.

How much deposit does a Louisiana wholesaling contract need?

At least 1% of the purchase price under the Act as read, held in escrow in Louisiana or in the seller account. On a $158,000 house, that is $1,580. The deposit returns to you only if the seller cancels in the rescission period.

Where do I look up bank-owned homes in New Orleans?

Start with listing portals, servicer REO pages, local listing brokers and Orleans Civil Sheriff sale results. Then check the Orleans Parish records to confirm who holds title before you make an offer. Ask the listing broker whether the lender accepts assignment, and get that answer in writing.