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<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">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.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Calibri","sans-serif";color:#404040"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Calibri","sans-serif";color:#404040">Kameron C. Cayce<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:18.0pt;font-family:"Garamond","serif";color:#0F243E">cayce</span><span style="font-size:18.0pt;font-family:"Garamond","serif";color:#595959">|</span><span style="font-size:18.0pt;font-family:"Garamond","serif";color:#0F243E">grove</span><b><span style="font-family:"Calibri","sans-serif";color:#595959">
</span></b><span style="font-family:"Calibri","sans-serif";color:#595959">LAW OFFICES</span><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#595959"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Calibri","sans-serif";color:#595959"><a href="mailto:grifan@caycegrove.com"><span style="color:#595959;text-decoration:none">kam@caycegrove.com</span></a>
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Calibri","sans-serif";color:#595959"><a href="http://www.caycegrove.com/"><span style="color:#595959;text-decoration:none">www.caycegrove.com</span></a>
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Calibri","sans-serif";color:#595959">425.255.0603<o:p></o:p></span></p>
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<p class="MsoNormal"><b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif"">From:</span></b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif""> wsbapt-bounces@lists.wsbarppt.com [mailto:wsbapt-bounces@lists.wsbarppt.com]
<b>On Behalf Of </b>Jim Doran<br>
<b>Sent:</b> Wednesday, February 11, 2015 8:42 AM<br>
<b>To:</b> 'WSBA Probate & Trust Listserv'<br>
<b>Subject:</b> Re: [WSBAPT] foreclosure purchaser referral needed<o:p></o:p></span></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="font-family:"Calibri","sans-serif";color:#1F497D">Funny thing, this kind of situation with a condo just walked into my office, too.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Calibri","sans-serif";color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Calibri","sans-serif";color:#1F497D">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.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Calibri","sans-serif";color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Calibri","sans-serif";color:#1F497D">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?
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Calibri","sans-serif";color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Calibri","sans-serif";color:#1F497D">Thank you for any thoughts on this. <o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Calibri","sans-serif";color:#1F497D"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Calibri","sans-serif";color:#1F497D">James R. Doran<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Calibri","sans-serif";color:#1F497D">Attorney at Law<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Calibri","sans-serif";color:#1F497D">100 E. Pine Street – Suite 205<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Calibri","sans-serif";color:#1F497D">Bellingham, WA 98225<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Calibri","sans-serif";color:#1F497D">(360)393-9506<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><a href="mailto:jim@doranlegal.com"><span style="color:#0563C1">jim@doranlegal.com</span></a><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><a href="http://www.doranlegal.com">www.doranlegal.com</a><o:p></o:p></span></p>
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<p class="MsoNormal"><b><span style="font-size:11.0pt;font-family:"Calibri","sans-serif"">From:</span></b><span style="font-size:11.0pt;font-family:"Calibri","sans-serif"">
<a href="mailto:wsbapt-bounces@lists.wsbarppt.com">wsbapt-bounces@lists.wsbarppt.com</a> [<a href="mailto:wsbapt-bounces@lists.wsbarppt.com">mailto:wsbapt-bounces@lists.wsbarppt.com</a>]
<b>On Behalf Of </b>Paul Neumiller<br>
<b>Sent:</b> Tuesday, February 10, 2015 2:44 PM<br>
<b>To:</b> 'WSBA Probate & Trust Listserv'<br>
<b>Subject:</b> Re: [WSBAPT] foreclosure purchaser referral needed<o:p></o:p></span></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">I had a similar situation where the HOA sued the Bank, the
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">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.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><o:p> </o:p></span></p>
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<p class="MsoNormal"><a name="Paul_Neumiller"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><img border="0" width="375" height="225" id="_x0000_i1025" src="cid:image001.jpg@01D045DC.700DAB10"></span></a><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:white"><o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><o:p> </o:p></span></p>
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<p class="MsoNormal"><b><span style="font-size:11.0pt;font-family:"Calibri","sans-serif"">From:</span></b><span style="font-size:11.0pt;font-family:"Calibri","sans-serif"">
<a href="mailto:wsbapt-bounces@lists.wsbarppt.com">wsbapt-bounces@lists.wsbarppt.com</a> [<a href="mailto:wsbapt-bounces@lists.wsbarppt.com">mailto:wsbapt-bounces@lists.wsbarppt.com</a>]
<b>On Behalf Of </b>Kameron Cayce<br>
<b>Sent:</b> Tuesday, February 10, 2015 2:01 PM<br>
<b>To:</b> WSBA Probate & Trust Listserv<br>
<b>Subject:</b> [WSBAPT] foreclosure purchaser referral needed<o:p></o:p></span></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">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<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Calibri","sans-serif";color:#404040"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Calibri","sans-serif";color:#404040">Kameron C. Cayce<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:18.0pt;font-family:"Garamond","serif";color:#0F243E">cayce</span><span style="font-size:18.0pt;font-family:"Garamond","serif";color:#595959">|</span><span style="font-size:18.0pt;font-family:"Garamond","serif";color:#0F243E">grove</span><b><span style="font-family:"Calibri","sans-serif";color:#595959">
</span></b><span style="font-family:"Calibri","sans-serif";color:#595959">LAW OFFICES</span><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#595959"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Calibri","sans-serif";color:#595959"><a href="mailto:grifan@caycegrove.com"><span style="color:#595959;text-decoration:none">kam@caycegrove.com</span></a>
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Calibri","sans-serif";color:#595959"><a href="http://www.caycegrove.com/"><span style="color:#595959;text-decoration:none">www.caycegrove.com</span></a>
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Calibri","sans-serif";color:#595959">425.255.0603<o:p></o:p></span></p>
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