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Rights Of Washington Junior Lienors In Nonjudicial Foreclosure—Washington Mutual Savings Bank V. United States, 115 Wash. 2d 52, 793 P.2d 969, Clarified, Reconsideration Denied, 800 P.2d 1124 (Wash. 1990), John D. Sullivan

Washington Law Review

In Washington Mutual Savings Bank v. United State, the Washington Supreme Court extended the anti-deficiency provisions of the Deed of Trust Act to all non-foreclosing junior lienors. Because this decision makes all junior obligations uncollectible following a nonjudicial foreclosure, it may have a chilling effect on lenders and a serious impact on the availability of home equity loans. This Note examines the Washington Mutual decision and suggests that the court should have determined instead that a deficiency is allowed, but should be computed after applying any surplus value in the property sold against junior obligations. This Note also recommends a …