[WSBARP] foreclosure vs deed in lieu

Wed Sep 23 15:19:11 PDT 2020

“I think I should retire”  ….Robert D. “Rob” Wilson-Hoss.

I thought you already had (!?!).

It’s comforting to know such a grey eminence continues to lurk among us.

Go Bearcats.

clg

CARL LLOYD GAY

Non nobis solum nati sumus

     “Not unto ourselves alone are we born” 

           ~the motto of Willamette University~

GREENAWAY, GAY, MEDINA & MYERS

Attorneys and Counselors at Law                     

734 East First Street       Suite A

Port Angeles, Washington   98362

Email                       <mailto:carl at greenawaylawfirm.com> carl at greenawaylawfirm.com

Telephone               (360) 452-3323                                                                                                                                                   

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From: wsbarp-bounces at lists.wsbarppt.com [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of rob at hctc.com
Sent: Wednesday, September 23, 2020 10:27 AM
To: 'WSBA Real Property Listserv'; cole-gilday at stanwoodlaw.net
Subject: Re: [WSBARP] foreclosure vs deed in lieu

Rick is of course right as always, but my experiences – including successful litigation with this as the centerpiece with a six figure result – is that most of the larger banks (usually through their undereducated and undertrained and undersupervised staff) often just don’t have any idea what they are doing. They have certain boxes, and if something doesn’t fit in a box, then they just can’t deal with it. A retiring Wells Fargo regional administrator who was responsible for these things explained this to me when I was really frustrated about a different case. Smaller banks, like the one Rick was a director for, pay attention. Larger banks, not so much. 

Rick’s bank used a sharp carving knife. Big banks use a dull chainsaw for the same cuts. 

Recall all of the times in the fairly recent past when a very large bank has been fined a huge amount of money for greed and incompetence.  

Sure, they can say they are worried about all sorts of things, but a title guaranty belies those worries. Try offering them an indemnification – they usually won’t even accept that.  My view is unfortunately cynical, but based on much experience. How can they not make money, especially in today’s markets, on deeds in lieu, if they are reasonably careful, as a general policy, over foreclosures often delayed by years by their own inefficiencies?

I think I should retire.

Rob 

Robert D. Wilson-Hoss

Hoss & Wilson-Hoss, LLP

236 West Birch Street

Shelton, WA 98584

360 426-2999

www.hossandwilson-hoss.com

rob at hctc.com

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From: wsbarp-bounces at lists.wsbarppt.com <wsbarp-bounces at lists.wsbarppt.com> On Behalf Of Rick Hoss
Sent: Wednesday, September 23, 2020 9:15 AM
To: cole-gilday at stanwoodlaw.net; 'WSBA Real Property Listserv' <wsbarp at lists.wsbarppt.com>
Subject: Re: [WSBARP] foreclosure vs deed in lieu

Lenders make foreclosure decisions for many reasons.  Each bank carefully monitors and categorizes non-performing loans, defaulted loans, loans in foreclosure and other real estate owned.  The number of loans in each of these 4 category is measured every month. Sometimes decisions are made based on timing, and you can get a different answer before or after the next regulatory exam or accounting period.

What if the bank holds too much foreclosed property  (they call other real estate owned) and they have an exam or audit next month?  Sometimes banks prefer a trustee sale or sheriff sale if they think a cash buyer is likely. What if the bank needs to realize, or defer, the loss for accounting purposes? What if the decision maker like a bank branch manager gets a bonus if the branch other real estate owned drops to a certain level? Sometimes servicers spend their foreclosure budget before year end. Some banks don't realize they can take a non-merger deed in lieu and reserve the right to foreclose any later discovered liens not disclosed in the trustee sale or litigation guaranty title reports. Sometimes banks listen to lawyers who have limited experience.

If a lender does take a deed in lieu they require a written agreement - you may get a different answer by proposing a lender friendly agreement with the PR listing the facts in a signed Declaration. From an old bank director and lawyer.

From: wsbarp-bounces at lists.wsbarppt.com <wsbarp-bounces at lists.wsbarppt.com> On Behalf Of Robert R. Cole
Sent: Tuesday, September 22, 2020 5:31 PM
To: WSBA Probate & Trust Listserv <wsbarp at lists.wsbarppt.com>
Subject: [WSBARP] foreclosure vs deed in lieu

Can someone tell me why Lenders don't take a deed in lieu, especially after Borrower's death, even when there is no other loan, and a PR willing to give it, and no Medicaid to be reimbursed?  It has happened to me numerous times.  Is it due to insurance issues or other back office matters???  What are they afraid of?

-- 

Very Truly Yours,

Robert R. Cole

Law Office of Cole & Gilday, P.C. 

10101 - 270th St. NW 

Stanwood, WA 98292 

(360) 629-2900 (Telephone) 

(360) 629-0220 (Fax) 

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