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WALLSTREETFIGHTER
WALLSTREETFIGHTER, Attorney
Category: Legal
Satisfied Customers: 17080
Experience:  14 years experience in representing clients, current member of legalshield, legal club of america, NYSUT and UFT attorney
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It has been two years since our fore closure in Washington

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It has been two years since our fore closure in Washington state. Second lien holder still sending monthly bills to us and reporting to credit bureau's. can they do this even though they have not filed a deficiency judgement ?

WALLSTREETLAW :

Hello I am a licensed attorney. I am here to help answer your questions. Please do not hesitate to ask for clarification

WALLSTREETLAW :

If the second lien holder was not paid after the sale,

WALLSTREETLAW :

they can still send bills for payments,

WALLSTREETLAW :

and can eventually sue you for the remaining balance,

WALLSTREETLAW :

What you should consider is contacting the lender, and try to work out some arrangement, where they way 70-80% of the balance and you make a payment plan for the rest of the amount,

WALLSTREETLAW :

Most times these lenders will accept some payment plan or balance reduction, also threaten a bankruptcy if they refuse to settle

WALLSTREETLAW :

If you have any further questions please do not hesitate to ask.

WALLSTREETLAW :

If satisfied please provide us with positive feedback, thank you

Customer: Not a full answer because I have also looked at Washington state law and it says if foreclosure was non judicial they cannot pursue debt,is this true ?
WALLSTREETLAW :

Let me clarify,

WALLSTREETLAW :

if this was a non judicial sale,

WALLSTREETLAW :

the original secured lender,

WALLSTREETLAW :

can avoid filing a lawsuit and sell the property,

WALLSTREETLAW :

they would not be able to bring legal action,

WALLSTREETLAW :

However, you are stating the second lender,

WALLSTREETLAW :

is bring legal action, as the second lender,

WALLSTREETLAW :

they are not prohibited from bringing such action, as the first lender was the party

WALLSTREETLAW :

who foreclosed,

WALLSTREETLAW :

If the second trust deed was a "purchase money" loan used in the purchase of a residence and the second trust deed foreclosed upon the property by way of a non-judicial foreclosure as opposed to a lawsuit filed in Washington State court, then most likely the bank cannot come back and sue you for the balnce owed on any shortfall after the residence's resale.

WALLSTREETLAW :

A "purchase money" loan is a loan used by a person to acquire property as opposed to a refinance and typically a home to live in for personal use by the borrower.

WALLSTREETLAW :

If the second was a HELOC or a line of credit from another institution, they would be allowed to collect,

WALLSTREETFIGHTER and 4 other Legal Specialists are ready to help you
Customer: replied 3 years ago.
Ty,that is now clear. Can or should we have a Washington State attorney negotiate on our behalf ?
yes, but I would try to contact them first, as you would have to pay fees for the attorney to handle this.