[WSBARP] lenders at a logerheads on release of security

[Eric Nelsen]

Of course any solution involves changing somebody's mind. DOL won't, so that's out.

Could current lender agree to let escrow handle the title elimination, so that current lender deposits the title, escrow handles as necessary to get title eliminated, and then completes the transaction?

Or maybe new lender would take the land plus mobile home title as security, with additional DOT covenant that buyer will eliminate title within X days after closing, on penalty of default?

That's all I've got on a Friday.

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] On Behalf Of Josh Grant
Sent: Friday, January 09, 2015 10:36 AM
To: wsbar
Subject: [WSBARP] lenders at a logerheads on release of security

Interesting closing we are attempting to get done.

Sale is of a mobile home and land.  Nice mobile.  Current lender understandably says “We won’t release the title until we get our money”.

New lender says “Oh, I see the title elimination never took place so we won’t fund the sale until the title is eliminated”.

DOL representative says, “you can’t eliminate the title without turning in the title”

I see each lender’s point.

The only suggestion I have thought of is that the seller gets a $50,000 bridge loan to clear off the title.  But I think for several reasons, that may not be as a practical matter doable.

Any other suggestions.

Joshua F. Grant, PS
Attorney at Law
P. O. Box 619
Wilbur, WA 99185
tel 509 647 5578
fax 509 647 2734
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