[WSBARP] Post FC sale issue UPDATE

Thu Jul 21 10:32:06 PDT 2016

Well, this is truly interesting now.

It was a non-judicial foreclosure.  The sale was purportedly in March of 2015.  I have all the documentation leading up to the sale.  I have seen no documentation that confirms for me the sale ever took place.  They are going to see what they have in that vein. BUT, that is just the tip of this fiasco.  The trustee that called the sale was Cal-Western … as in the infamous Butler & Hosch.

CONSUMER ALERT: ATTORNEY GENERAL SUES CAL-WESTERN FORECLOSURE TRUSTEE FOR DECEPTIVE BUSINESS PRACTICES
FOR IMMEDIATE RELEASE:   May 15 2014  Obtains restraining order to place moratorium on foreclosures for Washington residents
http://atg.wa.gov/news/news-releases/consumer-alert-attorney-general-sues-cal-western-foreclosure-trustee-deceptive

http://www.orlandosentinel.com/business/brinkmann-on-business/os-butler-hosch-license-20160222-story.html

I am hard pressed to imagine that whatever documentation that the bank received contains sufficient specificity in it to make me comfortable substituting in as trustee and making the representations that are necessary in a trustee’s deed – but I will see what they can find.  The other issue is whether or not a Title company would underwrite a trustee’s deed issued by a different trustee who was substituted in more than a year after the sale.  Plus, it is quite possible, give the AG’s accusations that the phone number in the NOS was a fake and there is no way to know now.

Given the elapse of time, I am hard pressed to think of any recommendation short of “appoint a new trustee and start over”.

Thanks,

Rich Holland
rich at pnwle.com<mailto:rich at pnwle.com>
733 7th Avenue, Suite 110
Kirkland, WA 98033
425-836-6240  / 425-748-3901 (fax)

The information contained in this communication, and in any attached document(s), is privileged and/or confidential, intended solely for the individual/entity to whom/which it was sent.  If you are not the intended recipient, you are hereby notified that any dissemination, distribution, or copying of this information is strictly prohibited.  If you have received this email in error, please notify me immediately at the email address, mailing address, or telephone or fax number above.

From: wsbarp-bounces at lists.wsbarppt.com [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Rick Hoss
Sent: Wednesday, July 20, 2016 11:59 AM
To: 'WSBA Real Property Listserv' <wsbarp at lists.wsbarppt.com>
Subject: Re: [WSBARP] Post FC sale issue

What if the bank orders a preliminary commitment for an owner’s title policy? I sometimes get a flow chart of an easier path than my plan.

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: Wednesday, July 20, 2016 10:42 AM
To: WSBA Real Property Listserv
Subject: Re: [WSBARP] Post FC sale issue

They are the bank.  They want to sell the property.

Thanks,

Rich Holland
rich at pnwle.com<mailto:rich at pnwle.com>
733 7th Avenue, Suite 110
Kirkland, WA 98033
425-836-6240  / 425-748-3901 (fax)

The information contained in this communication, and in any attached document(s), is privileged and/or confidential, intended solely for the individual/entity to whom/which it was sent.  If you are not the intended recipient, you are hereby notified that any dissemination, distribution, or copying of this information is strictly prohibited.  If you have received this email in error, please notify me immediately at the email address, mailing address, or telephone or fax number above.

From: wsbarp-bounces at lists.wsbarppt.com<mailto:wsbarp-bounces at lists.wsbarppt.com> [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Wendy Walter
Sent: Wednesday, July 20, 2016 10:29 AM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com<mailto:wsbarp at lists.wsbarppt.com>>
Subject: Re: [WSBARP] Post FC sale issue

In my experience, I’ve seen trustee’s deeds recorded as many as 5 years after the non judicial foreclosure sale.  Why does your client want to know what happens? Your clients motives might impact the answer to the question.

Wendy Walter | Partner - Pacific Northwest | Member State Bars of WA and OR
McCarthy ♦ Holthus LLP
    m. 108 1st  Ave. S., Suite 300, Seattle, WA  98104
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    e. wwalter at mccarthyholthus.com<mailto:wwalter at mccarthyholthus.com>
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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: Wednesday, July 20, 2016 10:21 AM
To: WSBA Real Property Listserv
Subject: Re: [WSBARP] Post FC sale issue

So I guess the question then becomes what happens in that ‘gap’?  If the sale took place but the deed wasn’t recorded within the 15 days, then it isn’t “final”.  Which means …. What?  Because that apparently is the issue.  There WAS a sale.  As Mr. Ordal mentioned, I am hoping that since there really isn’t a “Confirmation of Sale” except in a judicial, that it was a judicial and we can draft the deed for the Sheriff since it is probably still in redemption anyway.  But if not, if the sale was never ‘finalized’ even though it did take place, is a second ‘sale’ – with all that entails - required?  It really isn’t an issue of the debtor or any bidder, it’s the length of the process and frankly what will title require to underwrite.  Still, I appreciate the input.  Time to start researching …

Thanks,

Rich Holland
rich at pnwle.com<mailto:rich at pnwle.com>
733 7th Avenue, Suite 110
Kirkland, WA 98033
425-836-6240  / 425-748-3901 (fax)

The information contained in this communication, and in any attached document(s), is privileged and/or confidential, intended solely for the individual/entity to whom/which it was sent.  If you are not the intended recipient, you are hereby notified that any dissemination, distribution, or copying of this information is strictly prohibited.  If you have received this email in error, please notify me immediately at the email address, mailing address, or telephone or fax number above.

From: wsbarp-bounces at lists.wsbarppt.com<mailto:wsbarp-bounces at lists.wsbarppt.com> [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Rick Hoss
Sent: Wednesday, July 20, 2016 9:49 AM
To: 'WSBA Real Property Listserv' <wsbarp at lists.wsbarppt.com<mailto:wsbarp at lists.wsbarppt.com>>
Subject: Re: [WSBARP] Post FC sale issue

For a nonjudicial foreclosure 61.24.050(1) says if the trustee accepts a bid then the sale is final as of the date of acceptance of bid so long as the trustee’s deed is recorded within 15 days.
If no trustee deed is recorded within 15 days then the sale isn’t final.
If the sale is voided for some reason the trustee has to send Notice of Rescission of Trustee’s Sale, but this doesn’t have to be recorded.

If the sale is discontinued then the trustee records a notice of discontinuance under 61.24.090

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: Wednesday, July 20, 2016 9:15 AM
To: WSBA Real Property Listserv
Subject: [WSBARP] Post FC sale issue

So here’s an odd one.  I just was contacted by a client who wanted to know what happens in the following situation:

There is a foreclosure.  (Not sure if it was judicial or not but I have requested all documentation they can give me).
There is a sale.
Confirmation of sale is provided to the client – but I am not sure if that was an email or an actual document.
No foreclosure deed (again, not sure if Sheriff’s or Trustee’s at this point) is ever even drafted let alone recorded because “they closed up shop”.  ‘They’ apparently being the law firm.

I am getting documentation, as I said, but I am wondering if there is a time limit, particularly with a trustee’s sale, within which the trustee MUST convey.  We are talking months have passed.  And if the ‘worst’ applies, does the entire FC have to be restarted?

Sincerely,

Richard L. Holland

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733 7th Avenue, Suite 110
Kirkland, WA 98033
425-836-6240  / 425-748-3901 (fax)

The information contained in this communication, and in any attached document(s), is privileged and/or confidential, intended solely for the individual/entity to whom/which it was sent.  If you are not the intended recipient, you are hereby notified that any dissemination, distribution, or copying of this information is strictly prohibited.  If you have received this email in error, please notify me immediately at the email address, mailing address, or telephone or fax number above.

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