[WSBARP] Quiet Title Action

[Eric Nelsen]

I agree. Note matured and due in full 1/5/2010, assuming Client made no payments after that. S/L for a lawsuit was 1/5/2016. Strip the DOT via quiet title RCW 7.28.300.

If client made a payment after 1/5/2010, then S/L runs from the date of the last payment instead.

Also check to make sure client didn't make any statement after 1/5/2010 that could be interpreted as a renewal of the debt--an express promise to repay. But given the facts and the receivership/transfer/etc., seems unlikely there would be any evidence of such a statement that the bank would be able to find...

Sincerely,

Eric

Eric C. Nelsen
SAYRE LAW OFFICES, PLLC
1417 31st Ave South
Seattle WA  98144-3909
phone 206-625-0092
fax 206-625-9040

Please Note that We Have Moved. We have moved our Seattle office to Mount Baker Ridge (a small commercial community just above the I-90 tunnel). Our new address is 1417 31st Avenue South, Seattle WA 98144. All other contact information remains the same.

From: wsbarp-bounces at lists.wsbarppt.com [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of greg.listserv at jgsalyards.com
Sent: Thursday, January 12, 2017 10:02 PM
To: 'WSBA Real Property Listserv'
Subject: [WSBARP] Quiet Title Action

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
greg at jgsalyards.com<mailto:greg at jgsalyards.com>

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