I will say that if Phil is actually handling this the way he acts like he is to the public---letting the bank foreclose with no communication, basically daring them to go after him---he's going to be doing a lot of begging. They can't take his business, obviously, since it's not a physical thing to foreclose on, but he's only a step or two ahead of reality when he's usually a mile in front.
If he really is just letting them foreclose, he pretty much automatically loses the Connecticut property, which he seems to be underwater in anyway, owing more than it's possibly worth. Then they can get a deficiency judgment for the rest, although those are somewhat open to arguments about fairness in the terms of the contract. At this point, DSP no longer has the Connecticut property, and has a judgment in Connecticut state court.
So then, considering his only assets of worth are in Washington, they have to come there. After doing what procedural magic they need to domesticate a foreign judgment in Washington State, they then put a lien on the WA condo property. They don't have a security interest in it so they can't just seize it, but if he wants to sell it or someone wants to buy it, they're going to have to satisfy the judgment to sell the property.
Now, for all I know, he's underwater in the Washington property, and the debt holder there would have a security interest superior to anything from an out of state judgment. As well as the IRS, state taxes, and any other encumbrances there might be before they can do that.
His "business" isn't really that easy to collect from. They can't just send a sheriff over to take money from the till every time a customer buys something until it's satisfied. They can take some of his shit via a sheriff's sale by executing on the judgment and filing for that kind of relief. They can garnish bank accounts or PayPal or other payment methods, although this isn't easy and a slippery guy like DSP will probably make sure to keep that shit as empty as possible so when they do it, they don't get much.
He'll probably still ultimately have to declare bankruptcy, hope that Washington's homestead exemption or the federal one protect any equity he has in the Washington condo, and try not to lose that. If he's planning at all ahead it's some kind of asset protection strategy like that, although the fact he's even in this situation shows poor judgment. He really should have sold the Connecticut property when he could. Now it has a cloud over it and nobody in their right mind will buy it until the foreclosure sale.
