[WSBARP] Condo Foreclosure Basics

[Paul Neumiller]

BofA only has to redeem IF it was foreclosed upon.  You need to review the
court file to see who the condo association foreclosed against.  Most banks
now, when served with foreclosure documents on a condo unit, will pay the
back six months of assessments (representing the condo association's six
month super-priority lien), and then get dismissed out of the judicial
foreclosure, thereby preserving its lien status.  This means that your
client just paid $15k to be able to stay in the unit until BofA brings its
own foreclosure action.  Redemption rights only apply to liens that are
wiped out in the foreclosure.   By definition, if BofA ponied up the 6
months of assessment and was dismissed out of the lawsuit, BofA's lien
wasn't wiped out.  

 

 

 

From: wsbarp-bounces at lists.wsbarppt.com
[mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Richard Holland
Sent: Friday, May 1, 2015 10:18 AM
To: WSBA Real Property Listserv
Subject: Re: [WSBARP] Condo Foreclosure Basics

 

BoA will have the right to redeem by paying to your client what they paid
plus some interest etc.  It's in the statute but I am on mobile at the
moment.  It's possible that they won't of course but I would advise your
client not to get too excited just yet.

 

From: wsbarp-bounces at lists.wsbarppt.com
<mailto:wsbarp-bounces at lists.wsbarppt.com>
[mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Jim Doran
Sent: Friday, May 01, 2015 10:01 AM
To: 'WSBA Real Property Listserv'
Subject: [WSBARP] Condo Foreclosure Basics

 

I have client that just bought a condo at a Sherriff's sale for $15,000
which were the dues owed by the owner.  The underlying debt is with Bank of
America for $120,000 but the property has a value of $70,000.  B of A did
not show up at the sale.  

 

What happens?  Client gets the property subject to the Bank of America deed
of trust, right?  

 

So, the deadbeat prior owner won't pay, that's for sure.  My client doesn't
want to pay $120,000 to B of A.  So I expect there will be a foreclosure by
bank of America on the new owner.

 

What is the function of the "Redemption Rights" in the Bank?  Does the Bank
have to buy the place back from my client for what she paid at the sale?  

 

A quick overview of how this works would be appreciated.  Just the
framework.

 

Thanks, 

 

James R. Doran

Attorney at Law

100 E. Pine Street - Suite 205

Bellingham, WA 98225

(360)393-9506

jim at doranlegal.com <mailto:jim at doranlegal.com> 

www.doranlegal.com <http://www.doranlegal.com> 

 

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