What is a deficiency?
You owe $150,000. The house sells for $130,000. The $20,000 gap is the deficiency, the leftover. Whether anyone can still collect that gap is not one national rule. It depends on the state, the sale, and what the lender agrees to in writing.
We buy houses. We do not forgive debt, and we do not tell a lender what it must accept.
Want a cash offer, or to have us take over the payments? Call or text Charlie at (318) 714-4321, or Get My Cash Offer. Cash is not promised on every house. No fee, no obligation.
Louisiana: the sale papers matter
On a Louisiana foreclosure, look at one line: with appraisement, or without appraisement.
- Without appraisement. The notice says "without the benefit of appraisement." Under Louisiana Revised Statutes 13:4106, when a lender uses that waiver and the sale does not cover the debt, the debt is generally treated as satisfied as your personal obligation. There are exceptions. A lawyer reads your loan.
- With appraisement. The house is appraised. If the sale does not pay the debt, the lender may be able to seek a deficiency judgment. How the appraisal and the bids are credited is in Louisiana Code of Civil Procedure article 2336. It is not automatic. The lender generally has to ask a court.
A short sale is different from the sheriff's sale. In a short sale, the lender agrees to take less than you owe before a closing. The written approval is what says whether the leftover is waived, pursued, or left unstated. Do not assume silence means waiver. Our page on owing more than the house is worth is the short version of that path.
Our guide on after a sheriff's sale is the foreclosure version. If the house is in Caddo and the date is still ahead, read how to stop a Caddo sheriff sale.
Texas is not Louisiana
A Marshall or Harrison County house under a deed of trust is not a Caddo sheriff's sale. Texas has its own rules for a trustee sale and for whether a lender can seek what the sale did not cover. Those rules are not R.S. 13:4106. A Texas lawyer reads the note and the notice. We do not.
If the house is in Marshall, start with we buy houses in Marshall, TX. The county page is Harrison County.
Taxes are a third question
Forgiven debt can be taxable even when a lender agrees not to collect it. That is a CPA question, not ours. Ask before you sign an approval that forgives a balance. We will not guess what the IRS will do with your file.
What we can and cannot do
We can buy a house when the numbers work, including some houses that owe more than a cash price would cover. Sometimes that is a short sale the lender must approve. Sometimes taking over the payments fits better. Cash is not promised on every house.
We cannot promise the lender will waive a deficiency. We cannot promise a deficiency lawsuit will fail. We do not negotiate with your lender as a service, and we charge homeowners no fee.
Not legal advice and not tax advice. A lawyer handles the leftover debt. A CPA handles any tax on forgiven debt. We buy houses.
Updated November 2, 2026