[WSBARP] non-judicial deed of trust foreclosure but lender seeks receiver to sell the property

[Carl Gay]

Dear Colleagues,

 

A business client presents a case where his lender initiated a
non-judicial deed of trust foreclosure in November of 2013 by sending a
30-day Notice of Default under chapter 61.24 RCW.  No subsequent Notice of
Foreclosure or Notice of Trustee’s Sale was ever given.  However, two
weeks ago the lender filed and served a Complaint for Appointment of
Receiver and noted a show cause hearing as to why a receiver should not be
appointed immediately to take possession of the property.  The complaint,
motion, and supporting declaration state that a receivership will allow
the lender to “market and sell the property through a real estate broker,
ultimately yielding a higher price than at a trustee’s foreclosure sale”.
I believe my client has defenses to the foreclosure, but I am curious if
any of you have experienced this lender/beneficiary tactic, which is
certainly new to me.  In a brief review of chapter 7.60 RCW, and
specifically RCW 7.60.15, it appears in this circumstance the court can
only appoint a custodial receiver, not a general receiver, who would not
have any authority to sell the property. Thank you in advance for your
helpful comments and advice.

 

Best regards,

clg

 


CARL LLOYD GAY                 

GREENAWAY, GAY & TULLOCH

Attorneys and Counselors at Law                     

829 East Eighth Street       Suite A

Port Angeles, Washington   98362

Email                       <mailto:clgay at tfon.com> clgay at tfon.com

Telephone               (360) 452-3323


Facsimile                (360) 452-3724 

 

THIS EMAIL TRANSMISSION IS INTENDED FOR THE EXCLUSIVE USE OF THE
INDIVIDUAL OR ENTITY TO WHOM IT IS ADDRESSED, AND MAY CONTAIN PRIVILEGED
AND CONFIDENTIAL INFORMATION THAT IS COVERED BY THE ELECTRONIC
COMMUNICATIONS PRIVACY ACT (18 USC §§ 2510-2521). IF YOU ARE NOT THE
INTENDED RECIPIENT OR AGENT RESPONSIBLE TO DELIVER THE MESSAGE TO THE
INTENDED RECIPIENT, YOU ARE HEREBY NOTIFIED THAT ANY DISSEMINATION,
DISTRIBUTION, OR COPYING OF THIS COMMUNICATION IS STRICTLY PROHIBITED. IF
YOU HAVE RECEIVED THIS COMMUNICATION IN ERROR; PLEASE NOTIFY US
IMMEDIATELY BY TELEPHONE AND/OR EMAIL AND DELETE THE ORIGINAL MESSAGE.
THANK YOU 

 

===============================
- 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: 9230 bytes
Desc: not available
URL: <http://mailman.fsr.com/pipermail/wsbarp/attachments/20140618/3f54b53e/winmail.dat>