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If my house goes into a non judicial foreclosure sale, can the lender put liens on my other properties for the remaining debt?

Kingston, WA |

The Deed of Trust states that:“All of the foregoing is referred to in this Security Instrument as the “Property.” Borrower understands and agrees that MERS holds only legal title to the interests granted by Borrower in the Security Instrument, but if necessary to comply with law or custom, MERS (as nominee for Lender) has the right: to exercise any or all of those interests, including, but not limited to, the right to foreclose and sell the Property: and to take any action required of the Lender including but not limited to, releasing and canceling this Security Instrument.” I own property adjacent to the house. Should I deed it to my children to protect it?

Attorney Answers 1

  1. With some very limited exceptions, which don't appear to apply based on your statements, the lender is not able to obtain a deficiency judgment against you on non judicial foreclosure, and as such, the lender would not be able to lien your other property with a judgment Lien. My qualification to this answer is if you have lending on the property you are trying to protect, and that lending is from the same lender completing the foreclosure on the other property; in that case, there should be a careful review of the promissory notes and deeds of trust to make sure there's no creative language allowing recovery aagainst either or both properties if there is non payment.