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

[Rob Wilson-Hoss]

I have just done this one time. It required negotiations with the lender.
For the lender, it usually makes sense to work with someone like your
client, but that is not necessarily the determining factor for many larger
banks. The determining factor often is, for these banks, is there a way we
can say no to anything that we are asked to do that is outside of the little
boxes we are used to?

 

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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From: wsbarp-bounces at lists.wsbarppt.com
[mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Marcus Fry
Sent: Friday, December 04, 2015 1:53 PM
To: 'WSBA Real Property Listserv'
Subject: Re: [WSBARP] Does purchaser at judicial foreclosure of condo lien
have standing to cure pending nonjudicial foreclosure

 

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 
Facsimile:  (509) 575-1883 

 

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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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