Louisiana situation guide · Updated November 2026

Wholesaling Short Sale Properties in Louisiana

Wholesaling short sale properties in Louisiana means contracting to buy a home that is worth less than the owner owes, then assigning the contract once the lender agrees to take less. In Lafayette, energy-sector swings create these owners. Act 807 of 2026 (reported as effective August 1, 2026; confirm on legis.la.gov) still governs your contract.

Lender approval neededAct 807 disclosures100% online mentorship

Get the free starter kit Book a free call

Call/Text818-532-0481

Let’s find your starting point

Explore the mentorship.

Request a free fit call to discuss your goals and whether the program is right for you.

The short answer

Can you wholesale a short sale in Louisiana?

Yes, you can wholesale a short sale, but the lender must approve the price and Act 807 of 2026 requires written disclosures to the seller before the contract is signed. Approval can take weeks, so build time into the contract.

A short sale happens when the sale price is lower than the loan balance and the lender agrees to accept the shortfall. The owner cannot decide alone. You need the lender’s written approval, and the buyer must be able to wait. Read our short sale guide and the payoff statement guide before you quote a price.

In Louisiana, a lender may pursue foreclosure by executory process or by ordinary process, so owners can run out of time. Check current rules with an attorney. Whether a lender can chase the leftover balance afterward is also worth asking about; our deficiency judgment guide gives background, and our auction guide shows the alternative.

Short Sale Properties in Louisiana at a glance

Law	Louisiana Act 807, enacted in 2026
Gatekeeper	The lender signs off on the price
Foreclosure routes	Executory and ordinary process
Cooling-off	At least five calendar days
Deposit	No less than 1% held in escrow
Timeline	Lender review can run for weeks

The opportunity

Why short sales appear in Lafayette

Acadiana’s economy follows oil and gas, so layoffs and slowdowns can leave owners owing more than a home fetches. Parts of Lafayette Parish, from the Saint Streets to Broussard, Youngsville and Scott, have homes bought near the top of a cycle. If the owner is behind, a short sale may beat foreclosure. Start with pre-foreclosure leads and lis pendens filings, then reach out with a clear plan.

Owners owing more

A home worth less than the loan leaves few options besides a short sale.

Time pressure

Foreclosure filings push owners to decide quickly.

Lender discounts

Lenders sometimes take less than the balance to avoid a longer process.

Get the free starter kit See the mentorship

Lead sources

Where to find short sale leads in Lafayette Parish

Pre-foreclosure lists. Court records and notices point to owners already under pressure. See notices of default.
Layoffs. Owners affected by energy-sector cuts often have little room to catch up.
Divorce filings. Two owners with one loan may want a clean exit. See divorce leads.
Listings that sit. Overpriced homes that never sell are worth a look. See expired listings.
Referrals. Local attorneys and credit counselors may know owners who need options.

Your exit

Who buys short sales in Lafayette

Investors who can wait for lender approval are the best buyers. Many want a low price, a fixable house and a clear timeline. Be honest that approval may take weeks, or the lender may counter at a higher number.

Buyers should also understand that the lender, not the owner, makes the final decision. Ask for proof of funds up front, and keep the comps you used ready, since the lender will want evidence that the price is fair.

Book a free call

Step by step

How to start wholesaling short sale properties in Louisiana

Get the facts. Ask for the loan statement, any default notices and the owner’s hardship.
Test the price. Run the ARV calculator and the MAO calculator to find a figure the lender may accept.
Serve the notices. Give the seller the three written notices and the LREC form ahead of the signature.
Sign with a contingency. Make the sale depend on written lender approval and set aside the escrow deposit.
Send the package. Submit the contract, hardship letter, comps and proof of funds to the lender.
Assign when approved. Pass the contract to your buyer once the lender agrees in writing.
Close through title. Use an investor-friendly title company that has handled short sales.

Your checklist for wholesaling Short Sale Properties in Louisiana

Make the sale contingent on written lender approval.
Add the LREC cancellation form.
Escrow at least 1% of the price.
Ask an attorney about any leftover balance.
Warn buyers that approval can take weeks.

A Louisiana example: a Broussard owner underwater on a loan

Property	Four-bedroom house in Broussard
Estimated value	$240,000
Loan balance	$265,000
Contract price	$225,000
Escrow deposit (1%)	$2,250
Assignment fee	$9,000

This worked example uses made-up numbers. A couple in Broussard owed $265,000 on a house worth about $240,000 after an oilfield layoff. They received the written notices, heard that you planned to assign the contract and got LREC’s cancellation form.

They signed at $225,000, subject to lender approval, and $2,250 went into escrow. You sent the lender a hardship letter, comps and proof of funds. After several weeks, the lender approved the price in writing.

A local investor took the contract and paid you $9,000. The couple avoided a foreclosure sale, and their attorney reviewed whether any balance could remain.

Louisiana rules to know

Act 807 and short sale contracts

Short sales add a timing wrinkle to Act 807. The seller can cancel for at least five calendar days, but lender approval often takes much longer. Build both clocks into the contract: the cancellation notice with its 11:59 PM deadline, and a contingency for written lender approval. LREC’s cancellation form must be attached at no cost.

Escrow needs care too. Act 807 reads as requiring a deposit of at least 1% of the price, held in Louisiana escrow or in the seller’s account, and a violation can mean a civil penalty of up to $5,000. You may not act as the seller’s advisor. See our legal overview.

Learn it with a mentor

Get help with lender negotiations

Short sales reward patience and good paperwork. Bring your lender package to a mentorship call and we will help you tighten it.

See the course See the mentorship

FAQ

Short Sale Properties in Louisiana: common questions

Is wholesaling short sale properties in Louisiana legal?

Often yes, with care. Selling a short sale contract for a fee counts as wholesaling under the 2026 Louisiana law, and the lender still has to approve the price. Broker-license rules may matter as well. Check the current statute and consult a Louisiana attorney before you promote the deal.

Who approves a short sale price?

The lender approves it, not the owner or the wholesaler. The lender reviews the hardship, comps and buyer funds, then may accept, counter or refuse. Make your contract contingent on written approval, and tell your buyer that the process can take several weeks.

Can the owner back out during a short sale contract?

Yes, early on. Under the Act, the seller can cancel without penalty for five calendar days or more after signing. Lender approval usually arrives later, so the contract should say what happens to the deposit and the deal if the seller cancels or the lender refuses.

What if the lender wants the leftover balance?

That depends on the loan documents and Louisiana law, which this page cannot settle. Deficiency rules exist in the Code of Civil Procedure, and the lender may agree to waive the balance in writing. Ask a Louisiana attorney, and get any waiver in the approval letter.

Where does the deposit sit while the lender decides?

Act 807 reads as requiring it to stay in escrow in Louisiana at a federally insured institution, or in the seller’s account. It is at least 1% of the price. Your contract should state when it is returned if the lender declines. Confirm the current text and ask an attorney.