judicial foreclosure in WA?

[money-pit]

Hello, I live near Seattle, Washington. Bought a house at the beginning of 2006 with the intention of remodeling it, and was put into a "temporary", 11% loan by my mortgage guy with the idea that we would transition into a construction loan in a few weeks (this was to save me transactional money up front, I guess). I was never supposed to make a payment on that loan.

3 years later, I am still paying 11% or more than a half million dollars, I have burned through more than $400k on the project and I ended up tearing the house down. I was going to build a new house but...

I can't get a construction loan because of the credit markets, and I have depleted my cash reserves. My only option now is to walk away. However, the bank does not know that the house has been removed from the property. I am concerned that they will implement a judicial foreclosure and come after me for a deficiency judgement.

How common are judicial foreclosures in Washington? How worried should I be about them coming after me for the cost of replacing the 6,000 sf house that I tore down?What is the name of your state (only U.S. law)?

[HomeGuru]

Originally Posted by money-pit

Hello, I live near Seattle, Washington. Bought a house at the beginning of 2006 with the intention of remodeling it, and was put into a "temporary", 11% loan by my mortgage guy with the idea that we would transition into a construction loan in a few weeks (this was to save me transactional money up front, I guess). I was never supposed to make a payment on that loan.

3 years later, I am still paying 11% or more than a half million dollars, I have burned through more than $400k on the project and I ended up tearing the house down. I was going to build a new house but...

I can't get a construction loan because of the credit markets, and I have depleted my cash reserves. My only option now is to walk away. However, the bank does not know that the house has been removed from the property. I am concerned that they will implement a judicial foreclosure and come after me for a deficiency judgement.

How common are judicial foreclosures in Washington? How worried should I be about them coming after me for the cost of replacing the 6,000 sf house that I tore down?What is the name of your state (only U.S. law)?

**A: file a complaint against the mortgage guy. You've been royally screwed.