A Washington lender forecloses non-judicially on a deed of trust through a trustee's sale. The sale proceeds are insufficient to cover the full outstanding loan balance, leaving a $45,000 deficiency. The lender wants to sue the borrower personally for the $45,000 deficiency. Under Washington law, which of the following best describes the lender's ability to pursue a deficiency judgment after a non-judicial trustee's sale?

Correct Answer

C) The lender's ability to pursue a deficiency judgment after a non-judicial trustee's sale is significantly restricted under Washington law

Under Washington law (RCW Chapter 61.24), a lender who elects to foreclose non-judicially through a trustee's sale faces significant restrictions on its ability to obtain a deficiency judgment. Washington's anti-deficiency provisions limit or bar deficiency judgments following non-judicial trustee's sales in many circumstances, particularly for residential properties. By choosing the faster non-judicial route, lenders generally forfeit the right to pursue the borrower personally for any deficiency — this is a key trade-off of the non-judicial foreclosure system.