Washington Supreme Court Issued Ruling For Lenders Right’s

On January 8, 2015, the Washington Supreme Court issued a ruling protecting lenders’ rights to pursue deficiency judgments against guarantors of commercial loans when the property securing such loans has been reacquired through foreclosure. In Washington Federal v. Harvey, Supreme Court Case No. 90078-7, the State Supreme Court held that guarantors in that case were not shielded from a deficiency judgment against them for two reasons. First, the guarantors had not secured their own guaranties by granting deeds of trust and second, even if they had, “the foreclosed properties are not protected from deficiency judgments under the DTA (Washington’s Deed of Trust Act).” Whether you are a lender, borrower, or guarantor of another borrower, the importance of clear documentation of the transaction cannot be understated. Our years of experience in banking law allows us to provide concise guidance to financial institutions, borrowers, or guarantors involved in almost any transaction. The cost of a short document review can pale in comparison to the financial problems that the parties discover in cases like Harvey. Lender, borrower, or guarantor, let us help you on the front end, saving you from headaches on the back end. Find more information about Ledger Square Law P.S. at www.ledersquarelaw.com