S-983 _______________________________________________
SENATE BILL NO. 5500
_______________________________________________
State of Washington 50th Legislature 1987 Regular Session
By Senators Talmadge, Hayner, Lee and Rasmussen
Read first time 2/02/87 and referred to Committee on Judiciary.
AN ACT Relating to the fixing of fair value for homestead property for foreclosure; and amending RCW 61.12.060.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1. Section 410, page 207, Laws of 1854 as last amended by section 1, chapter 125, Laws of 1935 and RCW 61.12.060 are each amended to read as follows:
In
rendering judgment of foreclosure, the court shall order the mortgaged
premises, or so much thereof as may be necessary, to be sold to satisfy the
mortgage and costs of the action. The payment of the mortgage debt, with
interest and costs, at any time before sale, shall satisfy the judgment. ((The
court, in ordering the sale, may in its discretion, take judicial notice of
economic conditions, and after a proper hearing, fix a minimum or upset price
to which the mortgaged premises must be bid or sold before confirmation of the
sale.))
If the
property that is to be sold is subject to a homestead exemption under chapter
6.12 RCW, the court may, upon application for the confirmation of a sale,
((if it has not theretofore fixed an upset price,)) conduct a hearing,
establish the value of the property, and, as a condition to confirmation,
require that the fair value of the property be credited upon the foreclosure
judgment. ((If an upset price has been established, the plaintiff may be
required to credit this amount upon the judgment as a condition to
confirmation.)) If the fair value as found by the court, when applied to
the mortgage debt, discharges it, no deficiency judgment shall be granted.