[WSBARP] line of credit priority

[Josh Grant]

If a secured loan was paid off, the newest bank loan and lender will claim a priority under equitable subrogation.  

I have a different question.
My client had a secured line of credit.  He sold the secured house, the bank signed off on the payoff, the sale closed.  Instead of closing the line of credit, the bank “renewed” it without any new property being secured.  They now say client in breach because there is no secured property. We are going to suggest, “you knew about it, so by  your actions, your loan became unsecured, and client will continue to pay interest only payments as agreed”.
Anyone have an idea about how this should come out?

Josh Grant

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


From: Roger Hawkes 
Sent: Thursday, November 05, 2015 1:16 PM
To: WSBA Real Property Listserv 
Subject: [WSBARP] line of credit priority

What is the authority in Washington for subsequent advances under a recorded line of credit having priority upon execution sale by a subsequent judgment creditor?

 

Roger Hawkes, WSBA # 5173

19909 Ballinger Way NE

Shoreline, WA 98155

www.hawkeslawfirm.com

206 367 5000

Fax is 206 367 4005

 



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