No deficiency after a trustee sale of your home
RCW 61.24.100(1)
In plain words
For consumer loans, after a nonjudicial trustee sale the lender cannot get a deficiency judgment against the borrower or grantor. A deficiency is possible only in a judicial foreclosure or in limited cases such as commercial loans or waste.
Who is protected
Borrowers and grantors after a Washington trustee sale.
When it applies
- Only in Washington.
- Only after the foreclosure sale.
What you can do
Answer a deficiency demand
If a collector seeks a balance after a trustee sale, reply citing RCW 61.24.100.
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Honest limits
- A judicial foreclosure can include a deficiency.
- This is general education, not legal advice. Laws change and details matter — check the current official text or talk to a legal aid lawyer or HUD-approved housing counselor.
The law
- State lawAnti-deficiency
RCW 61.24.100(1)
Exact part: (1)
What it says: No deficiency judgment may be obtained after a trustee sale, except as the section allows for commercial loans.
Read the official texthttps://app.leg.wa.gov/RCW/default.aspx?cite=61.24.100
Court cases
- Homeowner lostSame topicMartins v. BAC Home Loans Servicing, L.P.
Martins v. BAC Home Loans Servicing, L.P., 722 F.3d 249 (5th Cir. 2013)
a mortgage servicer acting for a properly assigned mortgagee may foreclose in Texas without possessing the original note, and an oral promise to modify a large loan is not enforceable
- Homeowner lostSame topicMilton v. U.S. Bank National Ass'n
Milton v. U.S. Bank Nat'l Ass'n, 508 F. App'x 326 (5th Cir. 2013) (per curiam) (unpublished)
an agreement to delay a Texas foreclosure falls within the statute of frauds and must be in writing to be enforced
- Homeowner lostSame topicBFP v. Resolution Trust Corp.
BFP v. Resol. Tr. Corp., 511 U.S. 531 (1994)
the price received at a non-collusive foreclosure sale that complied with state law is reasonably equivalent value under the Bankruptcy Code
Related rights
Right to surplus funds deposited with the court
RCW 61.24.080(3)
If the trustee sale brings more than the costs and the debt, the trustee must deposit the surplus with the superior court clerk and send notice to people with an interest. Former owners can then ask the court to release the money.
Read this rightThe government cannot keep your home equity beyond the tax debt
U.S. Const. amend. VTakings Clause
If your home is taken or sold to pay property taxes, the government may collect what you owe, but it may not keep the extra value. Keeping the surplus is a "taking" of your property without just compensation, which the Fifth Amendment forbids (Tyler v. Hennepin County, 2023). You may be able to claim the surplus, but you usually must follow your state's claim process and deadlines.
Read this rightAfter a discharge, creditors cannot collect the wiped-out debt from you
11 U.S.C. § 524(a)(2)
A bankruptcy discharge wipes out your personal liability for most debts in the case. After that, the law forbids creditors from suing, calling or otherwise trying to collect a discharged debt from you personally. A court can hold a creditor in contempt if there was no fair doubt that its conduct was barred.
Read this rightRenters get at least 90 days' notice after a foreclosure
12 U.S.C. § 5220 note(Pub. L. 111-22, div. A, § 702(a)–(b))
If you rent a home that goes through foreclosure, the new owner must give you a notice to move at least 90 days before you have to leave. If you have a real (bona fide) lease signed before the foreclosure notice, you can usually stay until the lease ends. The exception is when the new owner will live in the home; even then you still get the 90 days' notice.
Read this rightRight to excess funds from a tax sale
RCW 84.64.080
If the county tax sale brings more than what was owed, the excess must be refunded to the record owner on application. If no one claims it within three years, it goes to the county and the claim is lost.
Read this rightTenants get 60 days’ notice after a trustee sale
RCW 61.24.146(1)
If you rent a home that is sold at a trustee sale, you must get at least 60 days’ written notice to vacate before you can be removed. You can still be evicted sooner for waste or nuisance.
Read this right