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David A. Leen's Answers
- 67 Legal Answers
- 0 Legal Guides
4
Attorney answers:
Under WA state foreclosure laws can the bank go after my assets after foreclosing on my home
Washington law prohibits a deficiency judgment following a non-judicial foreclosure. The property is sold by a trustee in full settlement of the debt. If there is a surplus, then the home owner can recover that unless there are other liens on the property that were wiped out by the foreclosure. Then, they can apply to recover the surplus in order of their priority. See, RCW 61.24. If there is a junior lien (second mortgage or line of credit), those creditors can sue you for the money, but...
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5
Attorney answers:
Will deed in lieu of forfeiture of a real estate purchase contract effect my credit?
The seller can agree not to report the credit information and most private parties would not do so. You should be careful about debt forgiveness which can result in tax liability. Have an accountant review the transaction. Especially if the property was commercial.
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3
Attorney answers:
Can a foreclosure attorney help me with a Deed-in-Lieu situation?
A deed in lieu has very few benefits in Washington for the homeowner. You might have potential liability for some of the debt, have taxable income for debt forgiveness, and have to move out sooner than waiting for a foreclosure to be completed. You have no liability for a first lien (deed of trust) when it is foreclosed non-judicially in this state. You remain liable for a second lien but often can negotiate that away at a substantial discount or bankrupt that debt. Your assumption that...
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1
Attorney answers:
In Washington State, can the bank do a judicial foreclosure on a 1st and 2nd purchase money mortgage?
Unless the property is agricultural, the vast majority of lenders would foreclose non judicially. The first lien holder cannot get a deficiency judgment in Washington. The holder of the second lien probably would not foreclose because it would then be responsible to payoff the first lien. But, the second lien holder could file a suit and probably get a judgment. This could be discharged in bankruptcy or negotiated down considerably, as the holder of the second lien becomes unsecured after...
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3
Attorney answers:
Notice of Trustee's Sale
The foreclosure notice will specify the foreclosure date. Many lenders are unable to keep up and the sales have been delayed for months. There will be mailed notice of a continuance. Once the sale actually occurs, the homeowner will get a notice to move out after 20 days. If the person does not move, then the new owner (usually the lender) will need to start an eviction proceeding which provides for further notice and a hearing. This process can take a month or so before the physical...
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3
Attorney answers:
Notice of Sale
The posting of the notice is required by law to insure that all proper parties know of the foreclosure and have an opportunity to stop it or exercise other options. You can take it down, however, right away. You will also get the same notice by mail and certified mail.
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2
Attorney answers:
How can I tell which foreclosure process is being executed?
You are correct. A Washington non-judicial foreclosure is initiated by mailed and posted notice of default, followed by a notice of trustee's Sale, which scheduled a Trustee's sale no sooner than 190 days after a default. Generally, no deficiency is allowed. A Judicial foreclosure is commenced by personal service of a summons and complaint for foreclosure. A judge must issue an order of sale by the Sheriff and this would follow a trial or successful summary judgment. There could be a...
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1
Attorney answers:
Ten states are so-called non-recourse, prohibiting deficiency judgments after most home foreclosures:
In Washington, a first lien deed of trust generally is foreclosed non judicially and is in full satisfaction of the debt. Unless a judicial foreclosure is used, (expensive and lengthy for creditors) no deficiency is permitted. No other property can be taken. If there is a second lien, that lien becomes unsecured if there is a foreclosure of the first lien and that creditor can sue for a money judgment. It can collect from all assets that are not exempt (wages, bank accounts, etc)....
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3
Attorney answers:
I unknowingly rented a house that is in foreclosure and up for auction in 2 weeks! Am I coverd by the new foreclosure law?
There is new federal legislation that may allow you to keep the lease as described in the following AP press release: "Buried in a housing law signed this week by President Barack Obama are protections that will help thousands of renters stay in their homes - at least for awhile - after their landlord has been foreclosed on. The law allows tenants to remain in their foreclosed rentals through the end of their lease and then 90 days after that before being forced to...
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2
Attorney answers:
Can junior lien holder send homeowner to collections after foreclosure?
Mr. Taylor's prior answer is generally correct. In Washington state it is possible that bidders might generate a surplus at the sale of the first lien. Then, the second lienholder can get that money to reduce (or hopefully eliminate) their debt. If there is money left after the second has been paid (unlikely) the borrower or other secured creditors, can obtain this surplus. In my experience, most holders of second liens, following foreclosure of the first, and where there was insufficient...
4 people marked this answer as helpful