Opinion ID: 2767543
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Heading: facts

Text: Wash. Fed. v. Harvey In November 2008, Kaydee Gardens 9 LLC borrowed approximately $2.6 million from Horizon Bank, evidenced by a promissory note and a loan agreement. The loan was secured by a deed of trust encumbering property located in Everett, Washington, granted by Kaydee Gardens. Lance Harvey guaranteed the loan on behalf of himself and his marital community but did not grant a separate deed of trust to secure the guaranty. In June 2011, the Federal Deposit Insurance Corporation assigned Horizon Banlc's interest in the loan, the deed of trust, and the guaranty to Washington Federal. By that time, Kay dee Gardens had defaulted on the loan. Kay dee Gardens's defaults were not cured by Kaydee Gardens, Harvey, or Harvey's marital community. Washington Federal initiated nonjudicial foreclosure proceedings and had the property in Everett sold by a trustee. Washington Federal was the successful purchaser at the sale. After the sale, a deficiency of approximately $1.2 million remained outstanding. Washington Federal sought the deficiency amount from the Harveys. The trial court granted the Harveys' motion for summary judgment. The Court of Appeals reversed the trial court. Wash. Fed. v. Harvey, noted at 179 Wn. 3 Wash. Fed. v. Harvey, No. 90078-7 App. 1033 (2014). We granted the Harveys' petition for review. Wash. Fed. v. Harvey, 180 Wn.2d 1021,328 P.3d 902 (2014). Wash. Fed. v. Gentry In December 2005, Blackburn Southeast LLC borrowed approximately $2.6 million from Horizon Bank (Loan 1), evidenced by a promissory note and a loan agreement. Loan 1 was secured by a deed of trust encumbering a property located on Little Mountain Road in Mount Vernon, Washington, granted by Little Mountain East LLC (the Little Mountain Deed of Trust). In April2009, Landed Gentry Development Inc. borrowed approximately $3.6 million from Horizon Bank (Loan 2), evidenced by a promissory note and a loan agreement. Loan 2 was secured by the Little Mountain Deed of Trust and a junior deed of trust encumbering a property located on East Blackburn Road in Mount Vernon, Washington, granted by Blackburn Southeast, Little Mountain East, and Blackburn North LLC. In September 2010, Gentry Family Investments LLC borrowed approximately $1.1 million from Horizon Bank (Loan 3), evidenced by a promissory note and a loan agreement. Loan 3 was secured by the Little Mountain Deed of Trust. Kendall Gentry and Nancy Gentry each guaranteed all three loans in their personal capacities, but neither of the Gentrys granted a separate deed of trust to secure any of the guaranties. 4 Wash. Fed. v. Harvey, No. 90078-7 In April 2010, the Federal Deposit Insurance Corporation assigned Horizon Bank's interest in the three loans, the deeds of trust, and the guaranties to Washington Federal. By that time, the borrowers had defaulted on all three loans. Neither the borrowers nor the Gentrys cured all of the borrowers' defaults. Washington Federal initiated nonjudicial foreclosure proceedings and had the Little Mountain and Blackburn properties sold by trustees. Washington Federal was the successful purchaser of the properties at the sales. After the sales, a deficiency of approximately $7.6 million remained outstanding. Washington Federal sought the deficiency amount from the Gentrys. The trial court granted the Gentrys' motion for summary judgment. The Court of Appeals reversed the trial court. Wash. Fed. v. Gentry, 179 Wn. App. 470, 319 P.3d 823 (2014). We granted the Gentrys' petition for review. Wash. Fed. v. Gentry, 180 Wn.2d 1021, 328 P.3d 902 (2014).