Rights after a Foreclosure Sale

A lot of foreclosure related cases are making their way through the courts right now,. The latest appellate decision concerns what rights a foreclosed upon borrower retains after a foreclosure sale. In general the right to stop the sale must be exercised prior to the sale taking place, and will often require the payment of a bond that the borrower may or may not be able to afford. However, rights to claim money damages generally survive the sale. The nature of the loan, residential or commercial, also affect these rights
The decision in Frizzell v. Murray was issued this week by the Supreme Court of Washington. The court decided that the borrower waived her right to have the sale enjoined by not filing the bond ordered by the court. However, the court left open the question of whether the Plaintiff retained a right to damages. This right was dependent on whether the loan was commercial or residential. The court did make clear that a lender merely labeling a loan “commercial”, when the borrower resides on the property, doesn’t necessarily make it so.