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<p class="MsoNormal">The court in a probate setting can't require the lender to take less than what is due under the secured obligation<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal"><span style="mso-ligatures:standardcontextual">Bryce H. Dille</span><o:p></o:p></p>
<p class="MsoNormal"><span style="mso-ligatures:standardcontextual">Dille Law, PLLC<o:p></o:p></span></p>
<p class="MsoNormal"><span style="mso-ligatures:standardcontextual">2010 Caton Way SW Ste. 101<o:p></o:p></span></p>
<p class="MsoNormal"><span style="mso-ligatures:standardcontextual">Olympia, WA 98502<o:p></o:p></span></p>
<p class="MsoNormal"><span style="mso-ligatures:standardcontextual">Office: 360-350-0270<o:p></o:p></span></p>
<p class="MsoNormal"><span style="mso-ligatures:standardcontextual">Cell: 253-579-5561<o:p></o:p></span></p>
<p class="MsoNormal"><b><u><span style="color:red;mso-ligatures:standardcontextual"><o:p><span style="text-decoration:none"> </span></o:p></span></u></b></p>
<p class="MsoNormal"><b><u><span style="color:red;mso-ligatures:standardcontextual">** Please note that I use the dictation feature of my iPhone and that sometimes everything I say does not get properly translated**<o:p></o:p></span></u></b></p>
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<p class="MsoNormal"><span style="font-family:"Arial",sans-serif;color:black"><img width="147" height="39" style="width:1.5312in;height:.4062in" id="yiv4204109992_x005f_x0000_i1027" src="cid:image001.png@01DA63DD.3964CAC0" alt="R_Alan_Swanson-WH-200"></span><span style="mso-ligatures:standardcontextual"><o:p></o:p></span></p>
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<p class="MsoNormal"><span style="mso-ligatures:standardcontextual">This transmission contains confidential attorney-client communications and may not be disclosed to any person but the intended recipient(s). If this matter is transmitted to you in error,
please notify the sender immediately. <o:p></o:p></span></p>
<p class="MsoNormal"><span style="mso-ligatures:standardcontextual"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="mso-ligatures:standardcontextual">Business Entity Creation and Management, Business, Government and Tax Law, Real Estate and Land Use, Residential, Commercial and Condominium Development Real Estate and Commercial Transactions
& Closings, Including Performing Services as IRS Section 1031 Exchange Facilitator Estate Planning, including Wills and Trusts, and Probate Administration Representation Homeowners/Condominium Association Real Estate Developments Real Property Foreclosures
and Forfeitures.<o:p></o:p></span></p>
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<p class="MsoNormal"><b>From:</b> wsbapt-bounces@lists.wsbarppt.com <wsbapt-bounces@lists.wsbarppt.com>
<b>On Behalf Of </b>Jon Fritzler<br>
<b>Sent:</b> Monday, February 19, 2024 11:38 AM<br>
<b>To:</b> WSBA Probate & Trust Listserv <wsbapt@lists.wsbarppt.com><br>
<b>Subject:</b> [WSBAPT] Short-sale of real estate in probate<o:p></o:p></p>
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<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Arial",sans-serif;color:black">Listmates,<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Arial",sans-serif;color:black">I represent a PR who does not have nonintervention powers in an estate that was originally thought to be solvent but turns out to be insolvent. The main asset is
the decedent's house. As is required when a PR without nonintervention powers is selling real estate, the estate had the house appraised before listing it. It was listed for quite some time before the estate finally got an offer for 90% of the appraised value,
the minimum price that the PR could accept per RCW 11.56.090. (<span style="background:white">The decedent used a wheelchair and some modifications had been made to the house. It is also in need of some improvements. Together, these factors reduce its marketability.)
</span>The PR accepted the offer - contingent on court approval. </span><o:p></o:p></p>
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<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Arial",sans-serif;color:black">However, there is a mortgage on the property and after deducting the realtor's commission and the costs of administering the estate, the net proceeds from the sale
will not be sufficient to completely satisfy the mortgage on the property. Because of this, the realtor said that the mortgage lender would need to approve the sale and asked them to do so. The lender then obtained its own appraisal, which came back higher
than the estate's appraisal. Based on its appraisal and its own requirement that the net proceeds be at least 88% of its appraisal, the lender has refused to approve the sale. <o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Arial",sans-serif;color:black">About the same time that the PR accepted the offer, the lender referred the property to foreclosure. There is caselaw holding that if the property is foreclosed
on the expenses of administering the estate will not have priority over the mortgage. In re Estate of Patton, 405 P.3d 205 (Wash. App. 2017). This, of course, is the opposite of what would happen if the property is sold by the PR. <o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Arial",sans-serif;color:black"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:12.0pt;font-family:"Arial",sans-serif;color:black">My question is this: In the context of a probate, is the realtor correct that the lender must approve the sale? In other words, if the estate moves ahead with asking
the court to approve the sale of the property and the court approves it, does the lender's refusal to approve the sale matter? I am considering filing a motion to approve the sale, setting it for hearing, and giving the lender notice.<o:p></o:p></span></p>
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<p><span style="font-size:12.0pt;font-family:"Arial",sans-serif;color:black">Sincerely,<br>
Jon M. Fritzler<br>
Attorney at Law<br>
717 E. 22<sup>nd</sup> St.<br>
Vancouver, WA 98663<br>
Tel. 360.818.4431<br>
Eml <a href="mailto:fritzlerlaw@outlook.com" target="_blank">fritzlerlaw@outlook.com</a></span><o:p></o:p></p>
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