[WSBAPT] Selling Property from Estate using a Deed of Trust (foreclosure risks)

[Mike Winslow]

Because the estate owns the property, it has the ability to utilize the Real
Estate Contract as the form for Seller Financing. The procedures for
recovery of the property (called a Real Estate Contract Forfeiture) are
considerably less expensive and cumbersome, with a shorter time line from
commencement of the procedure to recovery of the collateral. If the property
is to be owner occupied residential property, then the DOT Foreclosure Act
imposes substantial pre notice requirements and long time lines (additional
60-120 days) to complete the recovery process once default occurs. I
routinely recommend against client doing DOT based security interest for
owner occupied property loans. 
 
Recommend the LPB 45, available at the forms section of the WSBA website in
the LPO section. I prefer the 45 over the 44, as it has greater protections
for the Seller, even though you will see the 44 called "Residential Short
form".
 
I would recommend that a credit check, financial affidavit and copy of three
years' tax returns be reviewed as a condition of approving the buyer's right
to finance. Beware the need for consent in writing to run credit checks.
 
 
Michael A. Winslow
1204 Cleveland Ave.
Mount Vernon, WA 98273
Ph. 360-336-3321
Em. Mike at winslegal.com
 
This message is from an attorney, so it's confidential. If you are not the
intended recipient, it's too late to stop reading this message, but you may
not use it for any improper purpose. Huge Disclaimer available upon request.
 
From: wsbapt-bounces at lists.wsbarppt.com
[mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of G. (Gus) Benjamin
Lindsey III
Sent: Wednesday, May 03, 2017 2:23 PM
To: 'WSBA Probate & Trust Listserv'
Subject: [WSBAPT] Selling Property from Estate using a Deed of Trust
(foreclosure risks)
 
Hello,
 
PC (personal representative) is considering an offer buy real property from
an estate using a deed of trust. (Seller carrying the loan balance)
 
Seller/Personal Representative wants to know how "difficult/expensive" it is
to regain possession of the property in the event of a default. 
 
While I handle some property related matters, including ejectments, I am not
familiar with the foreclosure process.
 
Anyone have insight on this from the perspective of an estate? My initial
reaction is that this may not be the best approach for the estate but that
may be based on some past horror stories! My typical probate client does not
want this approach so this is  new one for me.
 
 
Sincerely,
 
G. (Gus) Benjamin Lindsey III
Attorney-at-Law

 
The Law Office of G. Benjamin Lindsey III
2012 Grade Road, Suite 202
Lake Stevens, WA 98258
 
Phone:   (425) 263-9585
 
website: www.gbl3law.com <http://www.gbl3law.com/> 
 
Employment/Labor Law     Construction Law     Civil Litigation     Estate
Planning      Probate     
Business Law
 
CONFIDENTIALITY NOTE: This e-mail message contains information belonging to
The Law Office of G. Benjamin Lindsey III, which may be privileged,
confidential and/or protected from disclosure.  The information is intended
only for the use of the individual or entity named above.  If you think that
you have received this message in error, please contact the sender.  If you
are not the intended recipient, any dissemination, distribution or copying
is strictly prohibited
 
 
 
 
-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://mailman.fsr.com/pipermail/wsbapt/attachments/20170503/2dc815aa/attachment.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image001.png
Type: image/png
Size: 10408 bytes
Desc: not available
URL: <http://mailman.fsr.com/pipermail/wsbapt/attachments/20170503/2dc815aa/image001.png>