Art. 2771 When deficiency judgment obtainable

If a lender forecloses on property and sells it at a court-ordered sale, the sale proceeds go toward paying off the debt. Sometimes the sale doesn't bring in enough money to cover what's owed. When that happens, this rule decides whether the lender can come after the borrower for the remaining balance, known as a deficiency judgment.

The key requirement is that the property must have been appraised before the sale. If the lender followed the proper process and had the property appraised under Article 2723 before selling it, then the lender can ask a court for a judgment against the borrower for the difference between what was owed and what the sale actually brought in.

If the property was not appraised before the sale, the lender loses the right to collect a deficiency judgment. This means the borrower would not owe anything more, even if the sale price didn't cover the full debt. This rule protects borrowers by making sure lenders follow the correct legal steps before they can pursue additional money after a foreclosure sale.