FW: [WSBARP] Sheriff's Sale Opening Bid

Fri Jul 18 16:58:22 PDT 2014

Here is the other.

Rod Harmon

RODNEY T. HARMON
       Attorney at Law
         P.O. Box 1066
      Bothell, WA   98041
     Tel:   (425) 402-7800
     Fax:  (425) 458-9096
    www.rodharmon.com
   rodharmon at msn.com

-----Original Message-----
From: wsbarp-owner at lists.wsbarppt.com
[mailto:wsbarp-owner at lists.wsbarppt.com] On Behalf Of Paul Neumiller
Sent: Friday, July 18, 2014 3:55 PM
To: wsbarp at lists.wsbarppt.com
Subject: RE: [WSBARP] Sheriff's Sale Opening Bid

Thank you for your wonderful answer.  As it turns out, I am working with
an
investor who may be a purchaser at the Sheriff’s sale.  The judgment
debtor
is deceased and no family member has come forward to probate the estate
(it’s been two years) so the HOA may get a deficiency judgment but there
are
no readily available assets.   The bank protected its interest in the
lawsuit by paying the HOA the six month’s super-priority assessments
amount
and got dismissed out of the lawsuit thereby preserving its lien.  The
judgment amount is high enough (assessments, penalties, atty fees, etc.)
that a bidder would have to think long and hard about buying a condo unit
that may get foreclosed upon any day now.  Basically, a purchaser would be
paying for the temporary right to use the unit until the bank foreclosed,
which could be tomorrow or could be in 3 years.

From: wsbarp-owner at lists.wsbarppt.com
[mailto:wsbarp-owner at lists.wsbarppt.com] On Behalf Of Rob Wilson-Hoss
Sent: Friday, July 18, 2014 1:55 PM
To: wsbarp at lists.wsbarppt.com
Subject: RE: [WSBARP] Sheriff's Sale Opening Bid

That is right - you can bid any amount. The calculation of how much to bid
depends on a number of factors:

*      a low bid that wins can get you a deficiency judgment, so you need
to
investigate the assets of the owner, does he or she own real property
elsewhere, and so on. These are also personal judgments as well as lien
foreclosures, so any amount left on the judgment after the price is paid
to
the plaintiff can be a deficiency judgment, which is like any other
judgment.

*      if it is abandoned and improved, then you may want to seek no
redemption, which means no deficiency judgment, which means you can bid
any
amount and see what happens. This can increase third parties' willingness
to
bid, if there is no redemption period and they can understand that. But if
there is no other bidder, as likely the case with no equity considering
the
bank loan, you just may want to bid the amount owed (no more than judgment
plus interest plus sheriff's costs; I usually leave a cushion to make sure
there are no excess proceeds to distribute);

*      how much the other senior encumbrances are, as you have identified;

*      what the property is worth subject to senior encumbrances;

*      you need to be careful to not submit a credit bid that is more than
the actual judgment plus interest plus sheriff's documented costs, as you
will then have to pay in cash the difference to the Sheriff, and
straighten
it out very soon with a supplemental judgment. This depends on whether the
clerk in your county actually follows the statute and just pays the
proceeds
as it says, or wants to wait for a court order; on the other hand, if
there
is an excess over the judgment plus interest plus sheriff costs, there
needs
to be a hearing about where to apply that, so you might have time to get
your supplemental judgment done before then. Supplemental judgments
include
all amounts not included in the original judgment plus interest and
sheriff's costs, so if you have attorney fees or additional assessments or
whatever, you may need a supplemental judgment to bring the judgment up to
where it needs to be;

*      and so on.

These calculations are best started before you start a lawsuit. In
particular, you can check for other real property owned by the member, and
check to see if it is encumbered; so you can know if you get a deficiency
judgment, you might be able to execute on it. My clients occasionally get
money falling out of the sky, when a member with a deficiency judgment
goes
to sell real property in a county where we have recorded the deficiency
judgment.

For various reasons, I have agreed with members who want to abandon to
take
a deed in lieu of foreclosure, non-merger; I can then offer title to the
bank in return for payment of the balance; a win-win-win for everyone.  I
am
waiting for a bank to figure this out and how it can save them a whole
bunch
of money; that may never happen.

Rob

Robert D. Wilson-Hoss
Hoss & Wilson-Hoss, LLP
236 West Birch Street
Shelton, WA 98584
360 426-2999

www.hossandwilson-hoss.com
rob at hctc.com

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Thank you.

This office does debt collection and this e-mail may be an attempt to
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To
the extent the Federal Fair Debt Collection Practices Act (15 U.S.C. §
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From:  <mailto:wsbarp-owner at lists.wsbarppt.com>
wsbarp-owner at lists.wsbarppt.com [ <mailto:wsbarp-owner at lists.wsbarppt.com>
mailto:wsbarp-owner at lists.wsbarppt.com] On Behalf Of Paul Neumiller
Sent: Friday, July 18, 2014 1:30 PM
To:  <mailto:wsbarp at lists.wsbarppt.com> wsbarp at lists.wsbarppt.com
Subject: [WSBARP] Sheriff's Sale Opening Bid

If a condo HOA creditor (unpaid assessments) goes to a sheriff sale for
the
unit for the amount of the judgment, does the judgment creditor/sheriff
HAVE
to bid the judgment amount as the minimum bid?  The unit is subject to a
Deed of Trust which exceeds the FMV of the unit and CC&Rs prohibit leasing
so the HOA may not want the unit back.  It seems to me that the HOA may
decide to accept a smaller bid amount at the auction from a third party
bidder than the judgment amount in order to, at least, get some cash
towards
the judgment amount and have a dues paying owner in the unit (at least
under
the holder of the Deed of Trust forecloses). Any thoughts before the
weekend
or is everyone already just staring out the window?

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Information provided on this list should not be considered legal advice.
As
with all lists - let the reader beware! No warranties or representations
are
made as to the accuracy of any information provided. All opinions and
comments in this message represent the views of the author and do not
necessarily have the endorsement of the Washington State Bar Association
nor
its officers or agents.

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- To unsubscribe, send a new message to removeme-wsbarp at lists.wsbarppt.com
-
OR - send a message to webmaster at wsbarppt.com asking that you be removed
from the wsbarp list.

Information provided on this list should not be considered legal advice.
As
with all lists - let the reader beware! No warranties or representations
are
made as to the accuracy of any information provided. All opinions and
comments in this message represent the views of the author and do not
necessarily have the endorsement of the Washington State Bar Association
nor
its officers or agents.
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