[WSBARP] Sheriff's Sale Opening Bid

Fri Jul 18 15:54:59 PDT 2014

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

This message is intended solely for the use of the addressee and may
contain information that is privileged, confidential, and exempt from
disclosure under applicable law.  If you are not the addressee, you are
hereby notified that any use, distribution, or copying of this message is
strictly prohibited.  If you received this message in error, please notify
us by reply e-mail or by telephone (call us collect at the number listed
above) and immediately delete this message and any and all of its
attachments.  Thank you.

This office does debt collection and this e-mail may be an attempt to
collect a debt, Any information obtained will be used for that purpose.
To the extent the Federal Fair Debt Collection Practices Act (15 U.S.C. §
1692) applies this firm is acting as a debt collector for the
condominium/homeowners' association named above to collect a debt owed to
it. Any information obtained will be used for collection purposes. You
have the right to seek advice of legal counsel.

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?  

===============================
- To contact the list administrator, send a message to:
<mailto:webmaster at wsbarppt.com> webmaster at wsbarppt.com 

- To unsubscribe, send a new message to:
<mailto:imail at lists.wsbarppt.com> imail at lists.wsbarppt.com, with the
following in the body of the message: unsubscribe wsbarp - OR - send a
message to  <mailto:webmaster at wsbarppt.com> 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. 

===============================
- To contact the list administrator, send a message to:
<mailto:webmaster at wsbarppt.com> webmaster at wsbarppt.com 

- To unsubscribe, send a new message to:
<mailto:imail at lists.wsbarppt.com> imail at lists.wsbarppt.com, with the
following in the body of the message: unsubscribe wsbarp - OR - send a
message to  <mailto:webmaster at wsbarppt.com> 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. 

===============================
- To contact the list administrator, send a message to:
webmaster at wsbarppt.com 

- To unsubscribe, send a new message to: imail at lists.wsbarppt.com, with
the following in the body of the message: unsubscribe wsbarp - 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. 

-------------- next part --------------
A non-text attachment was scrubbed...
Name: winmail.dat
Type: application/ms-tnef
Size: 19107 bytes
Desc: not available
URL: <http://mailman.fsr.com/pipermail/wsbarp/attachments/20140718/e799eb3a/winmail.dat>