[WSBARP] Quiet Title Action

[K. Garl Long]

Kirsch v. Cranberry is similar, but unpublished.

K. Garl Long


On 01/12/2017 10:01 PM, greg.listserv at jgsalyards.com wrote:
>
> 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 2^nd 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 7^th , 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 6^th 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
> _greg at jgsalyards.com <mailto:greg at jgsalyards.com>___
>
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