Full question:
Hello, I have property in Montana that I own free and clear. I have a house in Sultan, WA that I have a mortgage on. I am having a hard time making the payment. If the bank forecloses on the Sultan home can they go after my property in Montana to satisfy the remaining debt, if any?
- Category: Real Property
- Subcategory: Foreclosure
- Date:
- State: Washington
Answer:
The bank may well be able to go after your property in Montana. First, they have to sell the Washington house in an attempt to recoup the amount you owe. If they cannot get enough from the sale of the house (if the market price has fallen drastically from what you purchased it for with your loan), then they may well be able to go after other assets you own in order to recoup the debt you owe them.
'Deficiency Judgments' are allowed in Washington. That means a personal judgment against you for the remaining amount owed after the collateral (the Washington house) is sold.
See:
http://www.foreclosurelaw.org/Washington_Foreclosure_Law.htm
You may want to contact the above organization with further questions.
It is possible that Montana may not honor a Washington Court's judgment allowing a sale of your Montana property. Our information is that Montana does NOT allow deficiency judgments. But this becomes a full-faith-and-credit Constitutional issue. If the Washington bank attempts to attach your property in Montana, you would be well advised to contact a Montana attorney to attempt to block the sale of your Montana property. Good luck.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.
