[WSBARP] Quiet Title Action

Mon Jan 16 13:59:56 PST 2017

I think that the date of the last payment would be the date that the SoL would begin to run.  Aren’t there cases out there on revolving lines of credit that answer this question?

Catherine C. Clark
Law Office of Catherine C. Clark PLLC
2200 Sixth Avenue, Suite 1250
Seattle, WA 98121
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From: wsbarp-bounces at lists.wsbarppt.com [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Jim Doran
Sent: Friday, January 13, 2017 1:50 PM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
Subject: Re: [WSBARP] Quiet Title Action

I have done a quiet title action against Bank of New York Mellon and had them served and they defaulted.  The borrower now owns the home per a Court Order Quieting Title.  That was nearly 8 months ago and we have still not heard from the Bank.
For what it's worth.

James R. Doran
Attorney at Law
100 E. Pine Street -  Suite 205
Bellingham, WA 98225
(360)393-9506
jim at doranlegal.com<mailto:jim at doranlegal.com>
www.doranlegal.com<http://www.doranlegal.com>

On Thu, Jan 12, 2017 at 10:01 PM, <greg.listserv at jgsalyards.com<mailto: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 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<tel:(503)%20406-8775>
C: 503.421.7516<tel:(503)%20421-7516>
F: 503.715.5691<tel:(503)%20715-5691>
greg at jgsalyards.com<mailto:greg at jgsalyards.com>

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