[WSBARP] CCR question

[Karen Gibbon]

Jeanne,

It is my understanding that this has to do with FNMA underwriting requirements so that loans can be sold on the secondary market.

The super-priority in Washington applies to 6 months of assessments.  Generally the mortgage lender will pay the 6 months of assessments and get dismissed from the case.    Note that the state Supreme Court overruled the Court of Appeals in BAC Home Loans v. Fulbright (and Summerhill).  So if the lender fails to appear/respond and is defaulted, it can redeem the property during the redemption period.     The redemption amount is usually much higher than the amount for 6 months of assessments.

Karen L. Gibbon
Law Offices of Karen L. Gibbon, P.S.
3409 McDougall Avenue, Suite 202
Everett, WA 98201

Telephone: (425)212-3277 ext 1
Facsimile: (425)212-3280
Email: kgibbon at gibbonlaw.com<mailto:kgibbon at gibbonlaw.com>

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From: wsbarp-bounces at lists.wsbarppt.com [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Jeanne Dawes
Sent: Monday, March 16, 2015 5:26 PM
To: WSBA Real Property Listserv (wsbarp at lists.wsbarppt.com)
Subject: [WSBARP] CCR question

Dear Listmates:

What is the rationale for subordinating the homeowner's association lien/assessments to that of a first mortgage lender?  Is it because lender's will not lend if there is no subordination, or can the CCR's not subordinate the lien, and create a preference for unpaid (defaulted) homeowner lien assessments that would have priority over subsequently recorded mortgages?

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.



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