[WSBAPT] Non-judicial foreclosure: notice of default successor in interest

[J Richard McEntee, Jr.]

Hello Listmates

I am serving as trustee in a non-judicial foreclosure. About 30 days ago, I sent notice of default to the grantor of the deed of trust and guarantors of the note that was secured by the deed of trust. As I am preparing the notice of foreclosure and notice of trustee sale, I just received a commitment for a trustee sale guarantee. I note that several months after the note and deed of trust were signed. The grantor LLC formed a LP comprised (apparently - the same members of the LLC are listed as governors of the LP) of the same folks who were members of the LLC and guarantors of the original note. Same address for both entities as well. The LLC then a few months later gave a quit claim deed to the LP. It recites that no consideration was given and contains a legal description that is actually the abbreviate legal description. The full legal is not contained within the quit claim deed. As such, it may feeling is that it may be invalid to transfer ownership of the property. After the transfer and 14 months before the notice of default, the LP was administratively dissolved. 

After my lengthy preamble, my question is do I need to delay the process and send another notice of default specifically addressed to the LP? All of the LP’s governors listed at the secretary of state are the same persons who were guarantors of the note and who were transmitted the notice of default. The notice of default was not directly addressed to the LP. My feeling is that the governors of the LP would have a hard time stating that notice was never sent to the “LP.” Has anyone had any issue like this before? 

Thank you
Rich


RICH McENTEE
McENTEE LAW OFFICE
3800 Bridgeport Way W, Ste A411
University Place, WA 98466
253.227.9894(m)
jrmcentee at gmail.com       

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