[WSBARP] Forfeiture of Real Property under RCW 69.50.505

[scott at scottgthomaslaw.com]

Would suggest that you submit a notice to the local government notifying
them of client's interest in the property, and challenging any potential
forfeiture of client's interest immediately if you have not already done so.
The time period for doing so is extremely short, and that will at least
cover client's bases.  

 

From: wsbarp-bounces at lists.wsbarppt.com <wsbarp-bounces at lists.wsbarppt.com>
On Behalf Of Doris
Sent: Monday, April 23, 2018 10:43 AM
To: wsbarp at lists.wsbarppt.com
Subject: [WSBARP] Forfeiture of Real Property under RCW 69.50.505

 

My Client, a private commercial lender, made a real estate loan to Borrower
for a rental property.  Borrower was busted in March for growing marijuana
illegally and the city filed summons and complaint for Forfeiture of Real
Property (city also filed Lis pendens).  RCW 69.50.505 (1)(d)(iv) states: "A
forfeiture of a conveyance encumbered by a bona fide security interest is
subject to the interest of the secured party if the secured party neither
had knowledge of nor consented to the act or omission."  The city attorney
also assured me that Client has to be made whole if they have no knowledge
of the activities which is the case.  

 

Among other things, breach of the DOT includes committing waste or failure
to comply with laws regulations etc.  The DOT also permits lender to inspect
the property.  If Client wants to declare a default (Borrower is current on
loan payment), at what point does the Borrower breach for violating the law?
Is it when the government files Complaint for Forfeiture or only when the
government prevails in the case? How do I prove Borrower committed waste?
Before I send a notice of default, should I send a letter alleging breach
and demand an explanation? Assuming Borrower breached the terms of the loan
and we can foreclose, is it better that we take on the forclosure or let the
city proceed with the forfeiture and make Client whole after they sell the
property?  Are there other issues that I overlooked? 

 

I would like to associate with someone who has experience with similar
matters and willing to take on a Lewis county case. Thank you very much for
your help!

 

 

Regards, 

Doris Eslinger
Attorney at Law
Eslinger Law Office, PLLC 
2200 112th Ave NE | Suite 200 | Bellevue, WA 98004 | Phone: (425) 451-3237 |

Fax: (425) 633-2468 |  <mailto:doris at eslingerlawoffice.com>
doris at eslingerlawoffice.com |  <http://www.eslingerlawoffice.com/>
eslingerlawoffice.com  

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