After the sheriff has filed the process verbal or filed the sale for recordation in the parish conveyance records, the homeowner is precluded from asserting objections to the form or procedure of the sale or the lack of authentic evidence to support the seizure and sale.1

However, under state law, there may be other grounds to attack the sale as a nullity if the foreclosing creditor is the adjudicatee at the sale or still owns the property. For example, a sale may be annulled if:

• The sale price that was for less than two-thirds of the appraised value (if the home was appraised).2
• The sale took place without a prior seizure of the property.3
• The sale was judicial and took place without due process notice to a co-owner.4
• The sale was accomplished through fraud or ill practices.5
• The sale was conducted in violation of a bankruptcy stay order.

• 1La. R.S. 13:4112; cf. Avery v. CitiMortgage, Inc., 2008-2052 (La. App. 1 Cir. 5/13/09), 15 So. 3d 240 (holding that res judicata bars suit for nullity when debtor did not enjoin or appeal executory process).
• 2La. C.C.P. art. 2336.
• 3Turner v. Glass, 188 So. 147 (La. 1939).
• 4Magee v. Amiss, 502 So. 2d 568 (La. 1987).
• 5La. C.C.P. arts. 2001–2004; Ellerd v. Williams, 404 So. 2d 1271, 1273 (La. App. 2 Cir. 1981); Slidell Bldg. Supply, Inc. v. I.D.S. Mortg. Corp., 273 So. 2d 343 (La. App. 1 Cir. 1972).

If there is money left over after all creditors have been paid, the homeowner may seek return of those funds from the sheriff. At other times, another party may have a co-ownership interest in the property (or even a homestead exemption claim) that may not be subject to the mortgage. In these cases, the co-owner should take immediate action to protect the interest in the funds from a foreclosure sale.1

• 1See, e.g., Am. Thrift & Fin. Plan, Inc. v. Valteau, 576 So. 2d 598 (La. App. 4 Cir. 1991).

A foreclosure sale, short sale, or cancellation of debt in a loan modification may have income tax consequences.1

• 1For additional discussion of this point, see Section 12 of this manual’s chapter on tax law.

A deficiency judgment is “a personal judgment against the debtor for any deficiency remaining after the application of the net proceeds of [the foreclosure] sale to the [mortgage].”1  If the property was sold in executory process without appraisal, no deficiency judgment can be had.2  Untimely appraisals will also deprive the creditor of the right to a deficiency judgment. A debtor cannot waive the statutory prohibition against deficiency judgments when the real estate was sold without appraisal.3

• 1Citizens Sav. & Loan Ass’n v. Kinchen, 622 So. 2d 662, 664 (La. 1993).
• 2La. R.S. 13:4106; Williams v. Perkins‑Seigne Partner, 633 So. 2d 1247, 1249 (La. 1994), on reh’g, 93-2131 (La. 1/27/95), 649 So. 2d 367.
• 3La. R.S. 13:4107.