[WSBARP] Does purchaser at judicial foreclosure of condo lien have standing to cure pending nonjudicial foreclosure

[Marcus Fry]

Great question.  Logic and equity would dictate that the purchaser at the sheriff's sale would have the right to cure any other encumbrances.  But you are right, the PC doesn't fit any of these titles.  In my view PC doesn't even fit as an encumbrancer because PC actually received title rather than purchasing the condo lien and having it assigned to the PC.

Marcus J. Fry
Lyon, Weigand & Gustafson, P.S.
Adoption Attorney*
P.O. Box 1689
Yakima, Washington  98907
Telephone:  (509) 248-7220
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From: wsbarp-bounces at lists.wsbarppt.com [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Eric Nelsen
Sent: Friday, December 04, 2015 12:41 PM
To: WSBA Real Property listserve (wsbarp at lists.wsbarppt.com)
Subject: [WSBARP] Does purchaser at judicial foreclosure of condo lien have standing to cure pending nonjudicial foreclosure

Potential client purchased a condo at a sheriff sale resulting from judicial foreclosure of a condo lien for dues in arrears. (I do not have any further detail on that.)

The property also has a pending nonjudicial foreclosure on a bank loan, currently about 60 days out. The original borrower was, obviously, the prior owner of the condo, not PC.

Does PC have standing to pay the arrears and halt the trustee sale?

RCW 61.24.090(1)<http://app.leg.wa.gov/RCW/default.aspx?cite=61.24&full=true#61.24.090> says the people who can do that are: "the borrower, grantor, any guarantor, any beneficiary under a subordinate deed of trust, or any person having a subordinate lien or encumbrance of record on the trust property or any part thereof." PC doesn't expressly fall into one of these categories, it seems to me. But arguably is something like a successor in interest to a subordinate encumbrance?

Side issue: There is probably the additional wrinkle of a due-on-sale clause in the DOT, but since this trustee sale was predicated on failure to pay rather than disallowed transfer, I think that PC could delay things by paying the arrears and halting this trustee sale, and force the lender to issue a new notice of default for violation of due-on-sale.

Sincerely,

Eric

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

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