[WSBARP] Redemption Period

Thu Dec 3 11:46:11 PST 2015

One caveat--the below scenario won't work if there is a deficiency judgment. If a judgment debtor redeems, any deficiency judgment re-attaches to the property as a general judgment lien (that is, not having the priority or character of the original mortgage, which was fully extinguished by the foreclosure sale). Damascus Milk Company v. Morriss, 1 Wn.App. 501, 463 P.2d 212 (1969). Damascus at 507-509 specifically distinguishes earlier case law which has language making no distinction between these two qualities of lien, distinguishing Bollong v. Corman, 125 Wn. 441, 217 P. 27 (1923) and De Roberts v. Stiles, 24 Wn. 611, 64 P. 795 (1901).

Damascus at 504 also cites Ford v. Nokomis State Bank, 135 Wn. 37, 237 P. 314 (1925) for the proposition that, if the judgment debtor or his grantee redeems, "sufficient of the lien is revived" to allow resale to satisfy the deficiency. The same distinguishing feature outlined in Damascus would appear to apply to Ford as well as Bollong and De Roberts.

Sincerely,

Eric

Eric C. Nelsen
SAYRE LAW OFFICES, PLLC
1320 University St
Seattle WA  98101-2837
phone 206-625-0092
fax 206-625-9040

From: Eric Nelsen
Sent: Thursday, December 03, 2015 11:40 AM
To: 'WSBA Real Property Listserv'
Subject: RE: Redemption Period

How about this:

The judgment debtor has the right to redeem. If the judgment debtor redeems, then the redemption period immediately ends, per RCW 6.23.040(2), because the "estate of the debtor is restored." No sheriff's deed is required in that case.

Redemption rights can't be assigned, but must travel with the underlying interest in the property that gives rise to the right. Fidelity Mut. Sav. Bank v. Mark, 112 Wn.2d 47, 767 P.2d 1382 (1989); accord, Capital Inv. Corp. of Wash. v. King County, 112 Wn.App. 216, 47 P.3d 161 (2002).

So, have the judgment debtor execute a QCD with after-acquired title to the Purchaser. Purchaser redeems as successor in interest to the judgment debtor, which is allowed per RCW 6.23.010(2). The redemption period is thereby extinguished, and the estate of debtor is restored. The after-acquired title clause transfers debtor's restored estate to the Purchaser. Et voila!

I'd first get the title company to agree that will work, though. I've worked recently with First American Title in Spokane on a similar case. (The facts were not identical, but the above method occurred to me while I was doing my research.)

Sincerely,

Eric

Eric C. Nelsen
SAYRE LAW OFFICES, PLLC
1320 University St
Seattle WA  98101-2837
phone 206-625-0092
fax 206-625-9040

From: wsbarp-bounces at lists.wsbarppt.com<mailto:wsbarp-bounces at lists.wsbarppt.com> [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Jeanne Dawes
Sent: Thursday, December 03, 2015 11:11 AM
To: WSBA Real Property Listserv (wsbarp at lists.wsbarppt.com<mailto:wsbarp at lists.wsbarppt.com>)
Subject: [WSBARP] Redemption Period

Dear Listmates:

Does anyone know of a way other than abandonment, to shorten a 12-month redemption period?  We have successfully completed a judicial foreclosure, and all foreclosed parties and lien holders are agreeable to assigning or waiving their redemption rights.  The property is unimproved property.  The Purchaser at the Trustee's sale wishes to immediately begin marketing the property.  The real estate broker has indicated he will take a huge hit on price because of the redemption period exception on title.

I'm looking for a way that the title company could remove the exception from title without the sheriff's deed having been recorded; or a way to accelerate the redemption period to allow the sheriff's deed to be recorded now.  The redemption period began in November.

Thank you in advance for your help.

Jeanne J. Dawes
Attorney at Law
Gore & Grewe, P.S.
103 E. Indiana Avenue, Suite A
Spokane, WA 99207-2317
Voice:  509-326-7500
Fax:      509-326-7503
jjdawes at goregrewe.com<mailto:jjdawes at goregrewe.com>
INFORMATION CONTAINED IN THIS E-MAIL TRANSMISSION IS PRIVILEGED AND CONFIDENTIAL.  IF YOU ARE NOT THE INTENDED RECIPIENT, DO NOT READ, DISTRIBUTE OR REPRODUCE THIS TRANSMISSION (INCLUDING ANY ATTACHMENTS).  IF YOU HAVE RECEIVED THIS E-MAIL IN ERROR, PLEASE NOTIFY THE SENDER BY E-MAIL REPLY.

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://mailman.fsr.com/pipermail/wsbarp/attachments/20151203/6c06b0f5/attachment.html>