>In Washington, for example, the lender can use a simplified process (that gets used over 99% of the time) for a foreclosure that makes it non-recourse.
Yes it’s the difference between judicial and nonjudicial foreclosure.
But reworded: In Washington 100% of Banks can go for deficiency judgements after judicial foreclosure, but the banks have so much data they make the strategic choice of waiving that right in 99% of cases by going the nonjudicial route and foregoing the potential of the deficiency judgement. Further, in 1% of cases the bank has data that suggests the borrower has assets, income or even potential future income/assets that make the added time/cost of judicial foreclosure worthwhile.
In general it makes sense a defiency judgement isn’t worth the paper it’s written on...or he borrower wouldn’t have been foreclosed but in that 1% of (Washington cases) banks see people with income/assets who can pay trying to get out from an underwater property.
Yes it’s the difference between judicial and nonjudicial foreclosure.
But reworded: In Washington 100% of Banks can go for deficiency judgements after judicial foreclosure, but the banks have so much data they make the strategic choice of waiving that right in 99% of cases by going the nonjudicial route and foregoing the potential of the deficiency judgement. Further, in 1% of cases the bank has data that suggests the borrower has assets, income or even potential future income/assets that make the added time/cost of judicial foreclosure worthwhile.
In general it makes sense a defiency judgement isn’t worth the paper it’s written on...or he borrower wouldn’t have been foreclosed but in that 1% of (Washington cases) banks see people with income/assets who can pay trying to get out from an underwater property.