[WSBARP] Bankruptcy & Abandoned Property

[John McCrady]

>From the facts given, I agree with you.  The discharge eliminates the personal liability of the debtor but does nothing to the lien of the deed of trust.

John McCrady
Counsel
Puget Sound Title Company
5350 Orchard Street West
University Place WA 98466
253-476-5721

From: wsbarp-bounces at lists.wsbarppt.com [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Richard Holland
Sent: Tuesday, March 01, 2016 12:51 PM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
Subject: [WSBARP] Bankruptcy & Abandoned Property

So I have a lender client wanting to do a deed in lieu on a property.  Property was 'surrendered' by debtor in BK and 'abandoned' by Trustee.  BK discharged.  Lender (the first) is stating that they believe the 2nd was discharged.  My thought is that such a position makes no sense since essentially neither the debtor nor the trustee even 'dealt' with this investment property and as a result neither did the Court and at most all the 'discharge' would have done is wipe out any personal liability for the debt

Sincerely,

Richard L. Holland

[cid:image001.jpg at 01D173BB.9851C7B0]

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 priviledged 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.

- but that's more logic than some legal doctrine I can point to.  I have very little familiarity with BK law but, again, from a RE perspective, it seems to me the Lender needs to FC and wipe out the second to get it off title.  Am I missing something?
-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://mailman.fsr.com/pipermail/wsbarp/attachments/20160301/46be23a0/attachment.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image001.jpg
Type: image/jpeg
Size: 4227 bytes
Desc: image001.jpg
URL: <http://mailman.fsr.com/pipermail/wsbarp/attachments/20160301/46be23a0/image001.jpg>