Louisiana situation guide · Updated November 2026

Wholesaling Subject-To Deals in Louisiana

Wholesaling subject-to deals in Louisiana means contracting to buy a home while the seller’s mortgage stays in place, then assigning that contract to a buyer who will keep paying the loan. In Baton Rouge, behind-on-payments owners are common. Act 807 of 2026 (reported as effective August 1, 2026; confirm on legis.la.gov) applies to the contract, so the disclosures come first.

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The short answer

Can you wholesale a subject-to deal in Louisiana?

Yes, you can contract for a subject-to purchase and assign it, but Act 807 treats the assignment as wholesaling and requires written disclosures to the seller first. The existing loan stays in the seller’s name, which creates risks you must explain.

In a subject-to purchase, the deed moves to a new owner while the old mortgage stays in place. The buyer pays the lender each month. Your contract sets the price, the cash to the seller and who covers missed payments. Our subject-to guide walks through the structure, and the due-on-sale guide explains why the lender could call the loan.

Because you are selling the right to buy, Louisiana’s wholesaling law is in play. The seller must be told in writing that you plan to assign, that legal advice is wise and that the contract can be cancelled for five calendar days. Read our assignment guide, and have a Louisiana attorney review any plan to keep the loan in place.

Subject-To Deals in Louisiana at a glance

Law	R.S. 37:1448.5 as added by Act 807
Mortgage	Remains in the seller’s name
Biggest worry	A lender demanding full payment
Seller’s window	Five calendar days or longer
Escrow	One percent of price at minimum
Coverage	Homeowner and flood policies must keep running

The opportunity

Why subject-to appeals to Baton Rouge owners

Many East Baton Rouge Parish owners bought or refinanced when rates were low. Selling means swapping a cheap loan for an expensive one. A buyer who can keep that rate may pay a strong price, and a seller who is behind may welcome a plan that stops the damage. The 2016 flood left some owners with repair debts on top of mortgages. Look at pre-foreclosure leads and default notices in neighborhoods from Scotlandville to Zachary.

Low-rate loans

A buyer may pay more to inherit an older loan with a lower rate.

Owners behind on payments

A subject-to plan can stop missed payments before they hit credit.

Little cash needed

Buyers can enter with less cash than a bank loan would need.

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Lead sources

Where to find subject-to leads in East Baton Rouge Parish

Pre-foreclosure filings. Court filings show owners already in trouble. See how foreclosure auctions work.
Landlords. Owners tired of a rental near LSU may want out without a listing.
Divorce cases. Couples who must sell can be open to a payment plan. See divorce leads.
Relocating workers. Owners who must move for a job may need a fast handoff.
Direct outreach. Short letters to owners with high balances can work. See yellow letters.

Your exit

Who buys subject-to deals in Baton Rouge

Buyers are usually investors who want a low-rate loan and a rental, or owner-occupants who cannot qualify for a new mortgage. Tell each one plainly that the loan stays in the seller’s name and the lender could demand payment. A buyer who cannot handle that risk should pass.

Insurance is a quiet deal-killer. The homeowner policy must keep running, with flood coverage where the home needs it, and the seller should stay listed as an interested party. Ask a title company for a payoff statement and a clean balance before the buyer commits.

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Step by step

How to start wholesaling subject-to deals in Louisiana

Learn the loan. Ask for a recent mortgage statement, the balance, the rate and any missed payments.
Explain the risks. Tell the seller the lender could call the loan and that the loan stays in their name.
Hand over the notices. Deliver the written disclosures and the LREC form before the seller signs anything.
Run the numbers. Use the ARV calculator and the MAO calculator to check equity after the loan.
Sign and fund escrow. Use a contract that carries the statutory notice and an escrowed deposit.
Find the buyer. Match the buyer to the low-rate loan and make sure they understand the risk.
Close with title support. Use an investor-friendly title company and an attorney.

Your checklist for wholesaling Subject-To Deals in Louisiana

Obtain a recent loan statement.
Tell the seller the loan stays in their name.
Keep homeowner and flood coverage in force.
Give the LREC cancellation form at signing.
Let a Louisiana attorney review the plan.

A Louisiana example: a Gardere homeowner behind on payments

Property	Three-bedroom house in Gardere, Baton Rouge
Loan balance	$138,000 at 3.5%
Contract price	$145,000
Escrow deposit (1%)	$1,450
Cash to seller	$7,000
Assignment fee	$8,500

This worked example uses made-up numbers. A Gardere owner fell two payments behind after a job change and feared a foreclosure suit. She was told in writing that you meant to assign the contract, that she should seek legal advice and that she had five days to cancel.

She signed at $145,000: the $138,000 loan stays, and $7,000 in cash goes to her. A deposit of $1,450 went into escrow. Her attorney read the contract, and the five days passed.

A local landlord took the contract and paid you $8,500. He brought the loan current, kept the insurance active and understood the due-on-sale risk in writing.

Louisiana rules to know

Louisiana wholesaling rules that touch subject-to deals

Act 807 defines wholesaling to include contracting to buy with a plan to sell that right for gain. A subject-to purchase fits that definition whenever the contract is meant to go to someone else. The Act also lists conduct you must avoid: posing as the seller’s advisor or agent, claiming a license you lack, recording a lien or anything else that clouds title, and unfair trade practices.

On a subject-to deal the cloud-on-title ban matters. The seller still owes the lender, so a filing against the house could spark a fight with the servicer. Louisiana’s regulator and Attorney General both enforce the Act. See our license guide.

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Structure subject-to terms with care

These deals work when the risk is explained and the paperwork is clean. Send us your draft terms and we will help you test them before you sign.

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FAQ

Subject-To Deals in Louisiana: common questions

Is wholesaling subject-to deals in Louisiana legal?

It can be, when you respect Act 807 of 2026 and the lender’s terms. The Act applies if you intend to assign the contract for gain. Broker-license rules may also apply, and the due-on-sale risk remains. Check current text and talk to a Louisiana attorney before you sign.

Can the lender call the loan in a subject-to sale?

Many mortgages contain a due-on-sale clause that lets the lender demand payment when the property transfers. Lenders do not always act, but the risk is real. Tell the seller and buyer in writing, and ask a Louisiana attorney how to handle it in your contract.

Does the seller get a cancellation right?

Yes. As Act 807 reads, a seller who signs may walk away without penalty for at least five calendar days. The contract shows the exact cancel-by deadline, and the cancellation form comes attached. Because the loan stays in place, tell the seller what cancelling would mean for the payments.

Who pays the mortgage after a subject-to closing?

The new buyer makes the payments, but the loan usually stays in the seller name. Your contract should say who pays, who carries insurance and what happens if payments stop. Many investors use a servicer to track payments and keep records for both sides.

What deposit applies when the loan stays in place?

The deposit rule does not change: Act 807 reads as setting a floor of 1% of the purchase price, held in escrow. A subject-to price usually includes the loan balance plus cash to the seller, so calculate the deposit on the whole price. Confirm the current text with an attorney.