BILL REQ. #: S-3876.1
| State of Washington | 62nd Legislature | 2012 Regular Session |
Read first time 01/18/12. Referred to Committee on Financial Institutions, Housing & Insurance.
AN ACT Relating to protecting short sale sellers from payment of forgiven home loan debt if such debt forgiveness is reported to the internal revenue service; and adding a new section to chapter 61.24 RCW.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1 A new section is added to chapter 61.24 RCW
to read as follows:
If any beneficiary accepts a seller's written offer for the sale of
residential real property for which the sale's proceeds are
insufficient to pay in full the obligation owed to the beneficiary of
a deed of trust encumbering the residential real property, and the
seller subsequently reports to the internal revenue service that as a
consequence of the sale the beneficiary has cancelled all or a portion
of the obligation owed by the seller to the beneficiary, the
beneficiary or assignee of the beneficiary may not bring an action or
otherwise seek payment for the amount previously owed by the seller
that was reported to the internal revenue service.