[WSBARP] Tax Deed/Sale Unique Situation

[Eric J. Dooyema]

This is going to read like an exam question.but any help would be most
appreciated.

 

A house sits on two parcels; the property line goes through the house. The
parcels have been owned in common since the house was built in the 1950s
(and probably before). The last owner acquired both parcels in 2005 and took
out a loan using both parcels (and the house) as collateral. In 2011, one of
the parcels was sold at a tax sale for delinquent property taxes to a third
party. In 2016, the bank foreclosed on both parcels and obtained and filed a
Trustee Deed listing both parcels. According to the assessor the Bank owns
both properties. Let's assume that all proper notice and other requirements
have been met.

 

A new party wants to buy both parcels from the bank.

 

Last fun fact, the tax sale parcel is landlocked.

 

1. Did the bank have a right to foreclose on the tax sale parcel? 

2. Who owns the tax sale parcel now?

3. Will potential new buyer be able to get title insured on tax sale parcel
in a purchase from the bank?

4. Any other issues or remedies that come to mind?

 

The facts that the house sits on both parcels and they were divided by the
tax sale, it seems, are very unusual.

 

Please feel free to email me directly or call.thanks so much.

 

Eric at dooyemalaw.com 

 

Eric J. Dooyema

Dooyema Law Office

624 W Hastings Rd Suite 12

Spokane, WA 99218

509-474-1685  

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