[WSBARP] Quiet Title Action

[greg.listserv at jgsalyards.com]

Client was in construction business back before the financial meltdown.
Client had a line of credit (LOC) that was taken out to help finance
business.  Client in personal capacity was the debtor and business was the
guarantor and the LOC was secured by a Deed of Trust (in 2nd position) on
client's residence.  LOC note and trust deed on client's residence were
signed by Client, but not wife.  Wife was, but is no longer on title to the
residence (quitclaimed it to husband years earlier as his separate
property).

 

Nationwide financial meltdown occurs.  On or about February 2009,
Lender/Bank goes into receivership and the FDIC takes over.  Client is
notified by FDIC of suspension of funding which results in hamstringing
client's operations.  A few months later Client stops making payments and
has not made a payment since.  The note matures on 1/5/2010 and per terms of
note, all unpaid principal and interest is due.  In March 2010 FDIC sent
Final and Formal Demand on Maturity Letter and demands all amount owed.  In
April 2010, Client receives notice from FDIC that loan was sold to "LLC" on
4/1/2010.  In September 2010, Assignment of Real Estate Deed of Trust is
filed (FDIC to LLC).  In August 2010, loan servicer sends Notice of Default
and Intent to Accelerate letter demanding only past due payments.  

 

In November 2015, the loan servicer sends letter indicating that the
"balloon mortgage" matured on January 5, 2010 and that on January 7, 2016,
the full unpaid principal balance and accrued interest "will be due".  If
not paid by January 7th, the "loan will be in default and [mortgage
servicer] may take steps to accelerate the debt" and commence foreclosure on
the client's residence.

 

Over the past year the servicer has become aggressive and client wants them
to stop.

 

My Take:

 

The loan was matured on 1/5/2010.  This is the date for SOL to start.  The
SOL for lender to commence an action to collect on the note was 1/5/2016.
This makes the loan servicer's letter of November 2015 appear bizarre to me.
Threatening to commence action after the SOL has run.  Or am I missing
something?

 

My planned course of action is to strip the DOT off with a quiet title
action under RCW 7.28.300.  

 

I would appreciate someone having experience with this type of case sharing
their wisdom.

 

J. Gregory Salyards,

Attorney at Law, LLC 
Office: 401 6th St., Oregon City, OR 97045

Mail: 16006 S. Springwater Rd., Oregon City, OR 97045
T: 503.406.8775

C: 503.421.7516
F: 503.715.5691
 <mailto:greg at jgsalyards.com> greg at jgsalyards.com

 

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