[WSBARP] Trustee Sale Lien Notice continued....

Thu Nov 8 09:44:38 PST 2018

This is what I have learned about buying at trustee or sheriff sales:

1.    title. Either buy a guarantee, or at least an ownership history, from a title company. At a bare minimum have someone who understands how to do this look at the Auditor's files, knowing that they make indexing mistakes often. Best to spend the money on a title company. Run the owners' names through the auditor and court files to see if there are any judgments. 

2.    find out from the trustee whom they notified at every event, in writing. Trustees often do incomplete work around identifying and noticing subordinate interest holders who would be foreclosed out but weren't notified. 

3.    if anything comes up, be merciless in running it to the ground. Unreconveyed but obviously paid off deeds of trust, unfulfilled real estate contracts 45 years ago, plats with easements in them, everything.

4.    go to the county and/or city and look at their building and planning and health department (septic, well) files. Any issues, be merciless. Do not just hope they will go away.

5.    go look at it for encroachments and so on. If you can, talk to the neighbors. Look at it as carefully as you can for condition issues.

6.    if it is in a HOA, talk to them about their issues.

7.    absolutely understand the property tax status. 

Others will be able to add to this list. 

If everything is clean, great. If not, none of the problems are likely to go away just because you want them to later on. This is not as easy a path to free money as it sometimes seems. 

Rob

Robert D. Wilson-Hoss 
Hoss & Wilson-Hoss, LLP 
236 West Birch Street 
Shelton, WA 98584 
360 426-2999

www.hossandwilsonhoss.com
 <mailto:rob at hctc.com> rob at hctc.com

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From: wsbarp-bounces at lists.wsbarppt.com [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of nestor at pplsweb.com
Sent: Thursday, November 08, 2018 9:15 AM
To: 'WSBA Real Property Listserv'
Subject: Re: [WSBARP] Trustee Sale Lien Notice continued....

Wise advice. I have seen numerous times where a party bought a property at a foreclosure or Trustee sale, and not realize that the sale was based upon  a second mortgage or HOA.  The excuse was they didn’t think a title search or investigation was necessary.

Keep in mind the cost of re-foreclose, and consider offering them some money for a release of judgment lien.

Nestor Gorfinkel, Attorney at Law

Licensed in Washington & Florida

Florida Civil-Law (International) Notary

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From: wsbarp-bounces at lists.wsbarppt.com <wsbarp-bounces at lists.wsbarppt.com> On Behalf Of Rod Harmon
Sent: Wednesday, November 7, 2018 11:39 PM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
Subject: Re: [WSBARP] Trustee Sale Lien Notice continued....

This is why I don’t let my clients buy at trustee sales unless I have done a title search and prepared an abstract, and reviewed the trustee’s records to make sure it gave notice to all the parties with a lien or interest in the property.  And then told them not to do it anyway.

The criminal judgment doesn’t get a gratuitous bump-up in priority, though.  Your client is subrogated to the beneficiary’s position. The solution for your client is re-foreclosure to eliminate the criminal judgment.  

Rod Harmon

RODNEY T. HARMON

       Attorney at Law

         P.O. Box 1066

      Bothell, WA   98041

     Tel:   (425) 402-7800

     Fax:  (425) 458-9096

    www.rodharmon.com

   rodharmon at msn.com

From: wsbarp-bounces at lists.wsbarppt.com [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Bess Derting
Sent: Wednesday, November 7, 2018 12:01 PM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
Subject: [WSBARP] Trustee Sale Lien Notice continued....

   The prior email sent too early!!  Here is the rest:     

         Client purchased property at a Trustee's Sale in May 2018.  

         Client remodeled the house and put it up for sale.  

          A Superior Court criminal judgment for $25,728 appeared on title for a 2014 monetary judgment against the previous landowner.

           The Trustee did not give notice of the foreclosure to the judgement creditor

            The Trustee did not obtain a Trustee's Sale Guarantee, instead they obtained a "Two Owner Foreclosure Report" from Title Solutions, Inc.  The report only showed documents recorded with the County Auditor, it did not show the criminal judgment.  At the end of the report the following language appears "This information is taken from the public record and is made available for your use.  This is not to be interpreted as a title report or condition of title; we assume no responsibility for its contents".

            Since the criminal judgment creditor did not receive notice of the Trustee's Sale the title company still shows the criminal judgment on title.

           The Trustee denies it was their responsibility to give notice to ALL lien holders.

Suggestions? Case Law?

Thank you!

-- 

Mary E. (Bess) Derting

Derting & Appel, PLLC
Attorneys At Law
P.O. Box 845
112 N. Second Ave.
Okanogan, WA 98840
Ph:  509-422-1601
Fax:  866-238-7585

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