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<p>Mark -- thank you very much! <br>
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<p>Jeff Winter<br>
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<div id="divRplyFwdMsg" dir="ltr"><font style="font-size:11pt" face="Calibri, sans-serif" color="#000000"><b>From:</b> wsbapt-bounces@lists.wsbarppt.com <wsbapt-bounces@lists.wsbarppt.com> on behalf of Mark K. Funke <mark@funkelaw.com><br>
<b>Sent:</b> Sunday, March 6, 2016 1:14 AM<br>
<b>To:</b> WSBA Probate & Trust Listserv<br>
<b>Subject:</b> Re: [WSBAPT] Second Deed of Trust</font>
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<div>Jeffrey:
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<div>Generally the language of the recorded 1st DoT should tell you whether the 2nd is actually prohibited. If yes - then,<br>
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<div>It’s one of those things where no one cares until someone cares - which always seems to be a nitpick lawyer who is brought in for some other issue after the fact. </div>
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<div>Certainly if the 1st has a monetary default, then the first DoT holder sometimes also reference the existence of the 2nd DoT as an additional default. </div>
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<div>I have run into a situation where we were seeking to have a buyer assume the 1st DoT as part of the purchase and the institutional lender (1st DoT) made a big deal out of the default that existed because of an unapproved 2nd - even though the 2nd was going
to be paid off as part of the sale!</div>
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<div>I’ve never seen it be an issue all on its own - but rather it seems to be thrown into the kitchen-sink of other problems in some other underlying dispute. It probably rarely becomes a stand-alone issue because there is no easy way for the 1st position
lender to know whether a 2nd was recorded unless the 1st has a reason to again pull title. It also doesn’t have a huge impact on the rights of the 1st, so there isn’t that much reason to make a fuss over it on its own. </div>
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<div>Logically, it makes sense that a 1st DoT holder may want to restrict the existence of 2nd DoTs - the less equity an owner has in their property the more likely they are to default because they have less left to lose. That is, if you’ve taken all the cash
out of the property in the form of debt, then why not “let it go”. So properties with more debt end up in default more often than those with less debt -regardless of the fact that the 1st DoT holder is in a better equity position than the 2nd. </div>
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<div>Practically speaking clients generally want to do what they want to do. If the 1st DoT prohibits a 2nd DoT, explain the situation, explain the risks and then assuming the clients wants to proceed write a CYA letter before creating the 2nd DoT for the client. </div>
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<div>Thanks,</div>
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<div>- Mark</div>
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<div>Mark K. Funke, Attorney</div>
<div>4111 East Madison St. #272, Seattle, WA 98112</div>
<div><i>By appointment in Portland & Seattle</i></div>
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<div>P.206-632-1535</div>
<div><a href="mailto:mark@funkelaw.com">mark@funkelaw.com</a></div>
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<div><i>Licensed in Oregon & Washington</i></div>
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<div>On Mar 5, 2016, at 4:32 PM, Tom Stuen <<a href="mailto:tomstuen@comcast.net">tomstuen@comcast.net</a>> wrote:</div>
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<span style="font-size:11pt; font-family:Calibri,sans-serif; color:rgb(31,73,125)">Jeffery: It has not been a problem in my cases. I have not seen a senior deed of trust which provided that the filing of a second was a basis for acceleration. But yours could
say that. And maybe my seniors were not paying attention.</span></div>
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<span style="font-size:11pt; font-family:Calibri,sans-serif; color:rgb(31,73,125)">Tom Stuen</span></div>
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<b><span style="font-size:11pt; font-family:Calibri,sans-serif">From:</span></b><span style="font-size:11pt; font-family:Calibri,sans-serif"><span class="Apple-converted-space"> </span><a href="mailto:wsbapt-bounces@lists.wsbarppt.com" style="color:rgb(149,79,114); text-decoration:underline">wsbapt-bounces@lists.wsbarppt.com</a><span class="Apple-converted-space"> </span>[<a href="mailto:wsbapt-bounces@lists.wsbarppt.com" style="color:rgb(149,79,114); text-decoration:underline">mailto:wsbapt-bounces@lists.wsbarppt.com</a>]<span class="Apple-converted-space"> </span><b>On
Behalf Of<span class="Apple-converted-space"> </span></b>jeffrey winter<br>
<b>Sent:</b><span class="Apple-converted-space"> </span>Saturday, March 05, 2016 2:46 PM<br>
<b>To:</b><span class="Apple-converted-space"> </span>WSBA Probate & Trust Listserv <<a href="mailto:wsbapt@lists.wsbarppt.com" style="color:rgb(149,79,114); text-decoration:underline">wsbapt@lists.wsbarppt.com</a>><br>
<b>Subject:</b><span class="Apple-converted-space"> </span>[WSBAPT] Second Deed of Trust</span></div>
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<span style="font-family:Calibri,sans-serif">Listmates (at least those of you working on a Saturday):</span></div>
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<span style="font-family:Calibri,sans-serif">I am preparing a Second Deed of Trust for a client. I understand that it will be junior to the underlying financing that was secured by the primary Deed of Trust, but am still nervous about triggering anything adverse
when I record the Second.</span></div>
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<span style="font-family:Calibri,sans-serif">Has anyone ever experienced a senior secured party threatening acceleration based upon the filing of a junior instrument?</span></div>
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<span style="font-family:Calibri,sans-serif">Thanks in advance for your comments...</span></div>
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<b><span style="font-family:Garamond,serif; color:rgb(0,112,192)">Jeffrey D. Winter</span></b><span style=""></span></p>
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<b><span style="font-family:Garamond,serif; color:rgb(0,112,192)">Law Office of Jeffrey D. Winter, P.S.<br>
</span></b><span style="font-family:Garamond,serif; color:rgb(0,112,192)">604 North Main Street</span><span style="font-size:10pt; font-family:Garamond,serif; color:rgb(0,112,192)"><br>
</span><span style="font-family:Garamond,serif; color:rgb(0,112,192)">Ellensburg, WA 98926</span><span style="font-size:10pt; font-family:Garamond,serif; color:rgb(0,112,192)"><br>
</span><span style="font-family:Garamond,serif; color:rgb(0,112,192)">(509) 925-9600 tel.</span><span style="font-size:10pt; font-family:Garamond,serif; color:rgb(0,112,192)"><br>
</span><span style="font-family:Garamond,serif; color:rgb(0,112,192)">(509) 925-9606 fax</span><span style=""></span></div>
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