[WSBARP] Deed of trust and foreclosure

[Kaitlyn Jackson]

I'd like to know the answer to this as well!

Kaitlyn

On Tue, Nov 26, 2019 at 2:21 PM Timothy Lehr <timothy at stileslaw.com> wrote:

> Real Estate attorneys,
>
>
>
> PC owned real property with a mortgage and deed of trust securing the
> debt. PC subsequently took out a line of credit on the real property,
> signed a Bank Equity Maximizer Agreement (line of credit agreement), and
> equity lender secured debt with deed of trust on same property (inferior to
> first mortgage).
>
> PC then defaults on first mortgage and property is eventually foreclosed
> and sold at trustee’s sale. Bank buys the property at the trustee’s sale
> then sells it to third party. Both deeds of trust are wiped out, but PC
> still has this Equity Agreement and has been paying on it.
>
>
>
> PCs question is whether he is still required to pay on the line of credit.
> It has not yet been paid off. The agreement and deed of trust seem to be
> silent on this point. My assumption is the lender could still enforce the
> agreement that was signed even though the security instrument has been
> removed from the property. I also assume this situation comes up pretty
> regularly, but it’s my first time looking into it. Any thoughts are
> appreciated.
>
>
>
> Tim
>
>
>
> *Timothy C. Lehr*
>
> Attorney at Law
>
> Stiles Law Inc., P.S.
>
>
>
> p:   360.855.0131
>
> e:   timothy at stileslaw.com
>
> w:  www.stileslaw.com
>
>
>
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-- 
Thank you,

Kaitlyn R. Jackson | Attorney| DIMENSION LAW GROUP PLLC
130 Andover Park East, Suite 300 | Tukwila, WA 98188
t: *206.973.3500 *| f: *206.577.5090*| e: *kaitlyn at dimensionlaw.com*|
www.dimensionlaw.com

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