Washington Mutual Savings Bank v. United States

Guy, J.

(concurring)—I concur in the majority opinion and result, but I wish to clarify that opinion to insure *60understanding as to the rights of a junior deed of trust holder.

Washington law provides that no deficiency judgment may be obtained after a deed of trust foreclosure. However, where a junior deed of trust holder does not foreclose, that junior deed of trust holder is not precluded from suing under the note. See Adams v. FedAlaska Fed. Credit Union, 757 P.2d 1040 (Alaska 1988) where the Alaska Supreme Court permitted a creditor who held a second deed of trust on real property sold at a foreclosure sale to maintain a suit against the debtor on the promissory note, even though the creditor had no security interest on which to foreclose. In this case, Washington Mutual Savings Bank may bring action against the Shells for any balance owing under the promissory note in excess of the amount received by reason of the Internal Revenue Service redemption.

Reconsideration denied November 26, 1990.