[WSBARP] Condo Foreclosure Basics

[Jim Doran]

Ok.  That part is getting clear.  (Love statutory language).  

 

But, the client is talking the property subject to the Bank of America DOT
and Note.  I think.  What happens if Bank of America does NOT redeem the
property by paying my client back?

 

What's her worst case scenario?

 

James R. Doran

Attorney at Law

100 E. Pine Street - Suite 205

Bellingham, WA 98225

(360)393-9506

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

www.doranlegal.com

 

From: wsbarp-bounces at lists.wsbarppt.com
[mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Richard Holland
Sent: Friday, May 1, 2015 10:39 AM
To: WSBA Real Property Listserv
Subject: Re: [WSBARP] Condo Foreclosure Basics

 

6.23.020

Time for redemption from purchaser - Amount to be paid.

(1) Unless redemption rights have been precluded pursuant to RCW 61.12.093
et seq., the judgment debtor or any redemptioner may redeem the property
from the purchaser at any time (a) within eight months after the date of the
sale if the sale is pursuant to judgment and decree of foreclosure of any
mortgage executed after June 30, 1961, which mortgage declares in its terms
that the mortgaged property is not used principally for agricultural or
farming purposes, and in which complaint the judgment creditor has expressly
waived any right to a deficiency judgment, or (b) otherwise within one year
after the date of the sale.

 

     (2) The person who redeems from the purchaser must pay: (a) The amount
of the bid, with interest thereon at the rate provided in the judgment to
the time of redemption, together with (b) the amount of any assessment or
taxes which the purchaser has paid thereon after purchase, and like interest
on such amount from time of payment to time of redemption, together with (c)
any sum paid by the purchaser on a prior lien or obligation secured by an
interest in the property to the extent the payment was necessary for the
protection of the interest of the judgment debtor or a redemptioner, and
like interest upon every payment made from the date of payment to the time
of redemption, and (d) if the redemption is by a redemptioner and if the
purchaser is also a creditor having a lien, by judgment, decree, deed of
trust, or mortgage, prior to that of the redemptioner, other than the
judgment under which such purchase was made, the redemptioner shall also pay
the amount of such lien with like interest: PROVIDED, HOWEVER, That a
purchaser who makes any payment as mentioned in (c) of this subsection shall
submit to the sheriff the affidavit required by RCW 6.23.080, and any
purchaser who pays any taxes or assessments or has or acquires any such lien
as mentioned in (d) of this subsection must file the statement required in
RCW 6.23.050 and provide evidence of the lien as required by RCW 6.23.080.

 

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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