Page 1, Paragraph 2

Posted May 5th, 2008 by Joe Kaiser

Except that, we're a deed of trust state, and deeds of trust are foreclosed non-judicially.

Dear Rob,

The last few posts have been well over a thousand words each, so we’ll keep today’s on the shorter side.

I’m back to the Foreclosure White Paper, and this time have made it to the second paragraph where the term “deficiency” is discussed.

And, it turns out, author Eric Dunn is now oh-for-two.


Deficiency defined

Here, in part, is paragraph #2 . . .

Typically, when a home is sold at a foreclosure sale, the purchase price is far below the fair market value of the property – in some cases, the purchase price is even less than the amount of the debt on the property, leaving the homeowner with a “deficiency,” that is, a continuing debt against the homeowner. — The Foreclosure White Paper
Page 1, Paragraph 2

Except that, we’re a deed of trust state, and deeds of trust are foreclosed non-judicially.

Non-judicially, as you well know, Rob, means no courts, no judges, and more to the point, NO DEFICIENCY JUDGMENTS.


Banned outright

How is it, then, that Eric Dunn can write about Washington State foreclosure and not seem to realize that deficiency not only doesn’t happen in this state, RCW 61.24.100 actually bans it outright?

. . . a deficiency judgment shall not be obtained on the obligations secured by a deed of trust against any borrower, grantor, or guarantor after a trustee’s sale under that deed of trust — RCW 61.24.100

Saying, “. . . in some cases, the purchase price is even less than the amount of the debt on the property, leaving the homeowner with a “deficiency,” shows a lack of understanding of even the basics.

And Eric is the Washington State foreclosure expert?

I guess. He wrote a white paper, after all.


1 in 100

Yes, I understand a deed of trust can be foreclosed as a mortgage, and that every now and then, one is (though I guarantee Eric cannot explain why).

And, I understand in the 1 in 100 times a lawsuit is used to foreclose a deed of trust on someone’s home, 1 in 100 result in a deficiency judgment (though I guarantee Eric cannot explain why).

Happened to a buddy of mine, in fact.

But it’s so rare and so atypical that to suggest it as a core issue, important enough to be included in the second paragraph of a 77 page document, confirms he’s pretty much clueless about foreclosure in the real world.

Eric Dunn is an expert in Washington State foreclosures, much the same way attorney Cheryl Kringle is an expert in living trusts, I suspect.

In the arena,

Joe Kaiser

P.S. Onward, paragraph #3 awaits. Grrrrr.


One Response to: “Page 1, Paragraph 2”

  1. anemonehead responds:
    Posted: May 6th, 2008 at 9:49 pm

    Again, Eric shows his “expertise” to be underwhelming.


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