Posted by John Merchant on August 12, 2009 at 09:07:50:
If the loan was for purchase of residence by borrower, and defic. J was not expressly allowed by that Deed of Trust it’s probably not legal now for that lender or its assignee (you?) to file or pursue defic. J.
Regardless of what that lender or its assignee might want to do now, they have no right to ignore the WA law against defic. J in OO home-buyer’s loan.
And if you, as the short sale purchaser were to purchase that RE from the bank, you’d have no more rights than the bank has/had so you wouldn’t be able to file a defic. J suit either.
I live in WA State and am involved in a short sale.
Current loan, on the property being foreclosed upon, is the original loan secured to purchase the home, back in 2006.
My questions are:
Can a foreclosing lender seek a deficiency judgement if the proceeds from the foreclosure are less than the total amount of debt owed ?
If a short sale is agreed upon, can the lender seek a deficiency for the difference ? In other words, can they reserve the right to pursue a deficiency ?