Jennifer purchased a home in Bellevue, Washington using a deed of trust. She later defaulted on her loan payments and a trustee's sale was conducted. The property sold at the trustee's sale for less than the outstanding loan balance, leaving a $45,000 deficiency. Under Washington law, what is the lender's ability to pursue Jennifer for this deficiency after a non-judicial trustee's sale?
Correct Answer
C) Washington's anti-deficiency protections generally prohibit the lender from obtaining a deficiency judgment after a non-judicial trustee's sale on a residential property.
Under RCW 61.24.100, Washington's Deed of Trust Act contains anti-deficiency protections that generally bar lenders from obtaining a deficiency judgment after a non-judicial trustee's sale. By choosing the non-judicial foreclosure route, the lender gives up the right to pursue the borrower for any remaining deficiency. This is a significant consumer protection feature of Washington's non-judicial foreclosure system.
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