Finance
Under Washington law, a deed of trust lender who completes non-judicial foreclosure (trustee's sale) generally:
AMay sue the borrower for any deficiency balance
BCannot pursue the borrower for any deficiency after a non-judicial foreclosure✓ Correct
CMust wait 1 year before seeking a deficiency
DMay only seek deficiency if the loan was purchase money
Explanation
Washington's Deed of Trust Act (RCW 61.24) generally prohibits deficiency judgments after a non-judicial trustee's sale on residential property.
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Key Terms to Know
Deed of Trust
A security instrument used in many states instead of a mortgage, involving three parties: borrower (trustor), lender (beneficiary), and a neutral trustee.
DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
Short SaleA sale of real property where the sale proceeds are less than the outstanding mortgage balance, requiring lender approval.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
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