[WSBAPT] [WSBARP] Assignment/Sale of Redemption Rights

[Eric Nelsen]

Basic issue on assignment is really, it's just a quitclaim deed, not an actual assignment of redemption rights. "Former RCW 6.24.130 [now, RCW 6.23.010] requires that a successor in interest succeed to the judgment debtor's interest in the property [in order to redeem]." Fidelity Mut. Sav. Bank v. Mark, 112 Wn.2d 47, 767 P.2d 1382 (1989). That same case confirms that redemption rights are not severable from the underlying property interest that the redemption right springs from. In order to have a redemption right, one must have a property interest (interest of judgment debtor, a lienholder, or a successor in interest to either of them) that is granted the right of redemption under the statute.

The tricky bit is for the buyer of the redemption rights, in making sure that it is actually worth anything. The buyer will essentially be standing in the shoes of an heir of the deceased, which means that if the buyer redeems, the property is still subject to all encumbrances of the deceased, debts of the estate, etc.

For the seller of the interest, so long as the seller is making no representations as to the quality or value of the interest, and is quit claiming rather than offering any warranties, I do not see why the seller should not just take the buyer's money and run.

Sincerely,

Eric

Eric C. Nelsen
SAYRE LAW OFFICES, PLLC
1320 University St
Seattle WA 98101-2837
phone 206-625-0092
fax 206-625-9040

From: wsbarp-bounces at lists.wsbarppt.com [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Samuel M. Meyler
Sent: Tuesday, January 26, 2016 12:42 PM
To: WSBAPT at lists.wsbarppt.com; WSBARP at lists.wsbarppt.com
Subject: [WSBARP] Assignment/Sale of Redemption Rights

Listmates,

Looking for some input on the following scenario.  Potential client's mother passed away.  Deceased's home goes into judicial foreclosure and property is "sold" at auction (back to the bank).  Potential client has been approached by a third-party that is interested in paying client to assign/sell the redemption rights.  How is this properly accomplished?  Does anyone have forms that they are willing to share?  Thanks!

Sincerely,

Samuel M. Meyler
Attorney at Law

Mail:  P.O. Box 777 | Redmond, WA 98073-0777
Location:  8201 164th Ave. NE, Suite 200 | Redmond, WA 98052
Tel:  425.881.3680 | Fax:  425.881.1457 | Email:  samuel at meylerlegal.com<mailto:samuel at meylerlegal.com>

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