[WSBAPT] foreclosure purchaser referral needed

[Kameron Cayce]

As Paul noted, this is classic "buyer beware". The HOA foreclosure does not extinguish the banks first deed of trust. The only recourse I see is for the unwitting buyer to pay off the first deed of trust or otherwise negotiate with the lender to somehow take over the loan. As a practical matter I don't think that this is a real solution in the case of my PC as the outstanding balance to the bank is approaching the value of the condo. One underlying moral of the story is that you should not be purchasing at trustee or Sheriff sales without knowing what you are doing.


Kameron C. Cayce
cayce|grove LAW OFFICES
kam at caycegrove.com<mailto:grifan at caycegrove.com>
www.caycegrove.com<http://www.caycegrove.com/>
425.255.0603

From: wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Jim Doran
Sent: Wednesday, February 11, 2015 8:42 AM
To: 'WSBA Probate & Trust Listserv'
Subject: Re: [WSBAPT] foreclosure purchaser referral needed

Funny thing, this kind of situation with a condo just walked into my office, too.

First question: The Bank's deed of trust is not extinguished (foreclosed) at a Sheriff's tax sale, right?  So the "buyer" gets the property at the Sheriff's sale by paying off HOA dues, etc. "subject to" the banks deed of trust.

Second question:  During the one year period of redemption the "buyer" offers in writing several times to pay off the underlying deed of trust / promissory note and the Bank never gives him an answer.  Now, five years later, the Bank wants to add all kinds of interest and finance charges and inflate the pay-off figure.  The Bank has also just begun foreclosure proceedings against the deed of trust that the "buyer" had offered to pay off.  Does the "buyer" have any defense or offense as to the Bank's neglect of the matter for five years?

Thank you for any thoughts on this.

James R. Doran
Attorney at Law
100 E. Pine Street - Suite 205
Bellingham, WA 98225
(360)393-9506
jim at doranlegal.com<mailto:jim at doranlegal.com>
www.doranlegal.com<http://www.doranlegal.com>

From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Paul Neumiller
Sent: Tuesday, February 10, 2015 2:44 PM
To: 'WSBA Probate & Trust Listserv'
Subject: Re: [WSBAPT] foreclosure purchaser referral needed

I had a similar situation where the HOA sued the Bank, the
Bank paid the HOA six months of dues, thereby preserving its lien and then got dismissed from the foreclosure proceeding.  I didn't come up with anything other than buyer beware.  I would love to hear if there are ways to preserve the buyer's purchase the bank.  Please post if you get any answers off-line.

[cid:image001.jpg at 01D045DC.700DAB10]

From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Kameron Cayce
Sent: Tuesday, February 10, 2015 2:01 PM
To: WSBA Probate & Trust Listserv
Subject: [WSBAPT] foreclosure purchaser referral needed

PC purchased two condominiums at sheriffs sales arising out of a foreclosure of the homeowners associations lien for unpaid dues. Purchaser, a retired engineer, had no experience in bidding at a sheriff sale. He has since learned that the liens being foreclosed were Junior liens to fairly substantial first deeds of trust. Those deeds of trust are now in foreclosure (the first scheduled for May) and he is trying to determine what if anything he can do. I think he's got a real problem but this is beyond my expertise so I told him I would put it out to the listserv to see if there are any takers. I will forward him any replies. Thank you in advance


Kameron C. Cayce
cayce|grove LAW OFFICES
kam at caycegrove.com<mailto:grifan at caycegrove.com>
www.caycegrove.com<http://www.caycegrove.com/>
425.255.0603


________________________________
-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://mailman.fsr.com/pipermail/wsbapt/attachments/20150211/fded40f5/attachment.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image001.jpg
Type: image/jpeg
Size: 16924 bytes
Desc: image001.jpg
URL: <http://mailman.fsr.com/pipermail/wsbapt/attachments/20150211/fded40f5/image001.jpg>