A U.S. marshals’ foreclosure auction for the troubled Willows Apartments in New Orleans East took place on January 30, 2026, but failed to draw any bidders. With a starting price slightly over $5 million, the auction confirmed that the complex remains in limbo due to an $11 million loan default. A follow-up sale is scheduled for March.
The Willows Apartments, situated in the Lake Willow neighborhood, have been in federal foreclosure after the property failed to meet bond and loan obligations. The Tennessee-based Ministry Outreach Foundation owns the property, and court-appointed management is overseeing operations until a new owner emerges.
Despite the court filings indicating over $11 million owed, the initial auction opened at just over $5 million. The lack of bids highlights the ongoing challenges facing this multifamily complex, as lenders, investors, and the court-appointed manager search for viable next steps.
Local authorities, including Mayor Helena Moreno and community leaders, have noted the impact of the prolonged vacancy on neighborhood safety and property values. The city enforces codes and considers options to accelerate remediation, potentially through public-private partnerships or acquisition strategies.
Residents and potential buyers remain in a state of uncertainty, awaiting clarity on redevelopment and rehabilitation costs. The March auction will be closely watched, with a focus on resolving the complex’s status and assessing its role in the area’s redevelopment plans.
about the author: CSB Staff
