Borrower had an 80/20 on a home in WA state…both loans originated from the same bank, on the same day, and all proceeds went to the purchase of the home. Never refinanced or took out any equity. Home foreclosed last year (2009)…non judicial foreclosure.
Allegedly the sale covered the 1st mortgage (perhaps a little more). Yet the bank is still billing for the purchase money mortgage. No 1098A has been issued, nor any 1099C. Borrower was not served any court documents (deficiency judgment). Isn't Washington a non recourse mortgage state, absent a judicial foreclosure? Can the bank do this to the borrower? If not, can you point me to the authority that address's this particular issue?