The Firm recently resolved a lender’s policy claim involving the encroachment of a structure onto a neighboring tract. In this case, the property owner’s home encroached over the property line of her neighbor (her son). When the owner died, the loan fell into default, and the Bank commenced foreclosure proceedings. The son objected, claiming that he owned the part of the home that was on his property. The Court rejected the ownership claims, finding that they were unfounded under Louisiana law. After finding that the property owner was in good faith and the neighbor failed to object for a number of years, the Court then granted a servitude over the neighboring tract to accommodate the encroaching structure in exchange for payment of the fair market value of the encroachment. The Bank was then able to foreclose.