We need to walk away from our 80/20 in Seattle. Should we stop payments on both at the same time? That is our plan but not sure if the wisest. There is some controversy on these boards and even between apparent legal advice. Some say even in non-recourse states the second can sue and send you to collections for the deficiency. Others like the Real Estate Attorney who consulted with us said they will not because
1.We are in a non-recourse state
2. THe property is a primary residence
3. All the equity is solely for home purchase
One gal on here said her attorney said Washington is a one-action state and once the 1st forecloses that uses up the "one-action" and the secondary is now freed to pursue more or different action. Our attorney said the 2nd can only seek to collect funds 'until' the 1st foreclosure is finalized, then nothing can happen.
Now if it turns out the second can sue for deficiency and the debt is now unsecured and at collections. Since I dont have a home as the 1st mortgage has been auctioned,etc.-can they put a lein against my assets, and if so for how long?
Do I have any options if they can put a lein on my assets? Can I file b7 and be free from it? Is there a statute of limitations on them collecting?