[WSBARP] Condo Foreclosure Basics

[Richard Holland]

IF the HOA lien was superior to the BoA lien, BoA has been wiped out.  They can 'save' their position by 'redeeming' the property.  It's not 'subject to the BoA lien' unless the BoA lien was actually superior to the HOA lien.

That said, candidly the BoA lien probably is superior under the governing documents unless this is a really old Condo - since most Condo Declarations make dues subordinate to the first mortgages).  Get a copy of the Declaration from title - it's easy to find in there.  Also it is REALLY important to get a copy of the judgment from the Court - it might well have MADE the Condo the priority lien if BoA was served with the foreclosure suit but never even responded - that happens more often than you can believe.

From: wsbarp-bounces at lists.wsbarppt.com [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Jim Doran
Sent: Friday, May 01, 2015 10:30 AM
To: 'WSBA Real Property Listserv'
Subject: Re: [WSBARP] Condo Foreclosure Basics

Thank you.  I'll look in more detail later.

For now, the client's great fear is that she takes the property subject to the Bank of America deed of trust and will lose her $15,000 because she does not intend to pay Bank of America.

Can B of A foreclose my client out of the property without having to redeem it?

Client has not made the $15,000 payment to the Sherriff and has another hour and a half to do so.  Why do these things always come up at the last minute?

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>

From: wsbarp-bounces at lists.wsbarppt.com<mailto: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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