[WSBAPT] foreclosure purchaser referral needed

Wed Feb 11 09:27:09 PST 2015

Marcus, my situation is the same. The bank paid the super priority portion and was dismissed from the lawsuit. My client wrongfully thought that since the bank's name was on the lawsuit that that meant that there was somehow discharged. Obviously he was wrong.

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 Marcus Fry
Sent: Wednesday, February 11, 2015 9:19 AM
To: 'WSBA Probate & Trust Listserv'
Subject: Re: [WSBAPT] foreclosure purchaser referral needed

Jim:
1st ANSWER:  No the sheriff's tax foreclosure extinguishes the Bank's DOT unless the Bank was dismissed from the action as happened to Paul's client or the Bank was never served/given proper notice of the foreclosure (doubt it).  The below thread pertained to HOA lien foreclosures which may be subordinate to a Bank's DOT.

2nd Answer:  Assuming that the Bank's DOT is still in existence, did your client merely offer or did your client tender payment?  I think that could be the difference, but I like the bad faith/failure to mitigate damages argument against the Bank regardless.

Marcus J. Fry
Lyon, Weigand & Gustafson, P.S.
Adoption Attorney*
P.O. Box 1689
Yakima, Washington  98907
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From: wsbapt-bounces at lists.wsbarppt.com<mailto: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.E7C121A0]

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

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