[WSBARP] Taking Title Subject to Lien

[Dwight Bickel]

My understanding about the relevant law is that the lien did not attach to the real property prior to the filing of the bankruptcy, because the property was homestead. I presume homestead was formally stated in the bankruptcy petition, without contest that is now established. See Lien v. Hoffman , 49 Wash. 2d 642 (Div II 1957). I don't remember that issue discussed in a subsequent case. It pre-dates RCW 6.13.090 related to creating a lien upon excess value in homestead property, which was not done in your case.

After the Discharge, the creditor is prevented from further enforcing the debt, so the creditor is barred from recording that judgment or other execution procedures. I don't think 11 USC 522 (f) is needed because there is no lien upon the real property, but if you have difficulty convincing a title company to remove that judgment as an exception to allow a mortgage or a sale, it might be possible to seek that Order confirming there is no lien that would interfere with the homestead exemption. I have not seen a motion for that Order in these circumstances.

Dwight A. Bickel
Washington Title Professional
dwightbickel at hotmail.com
www.linkedin.com/in/dwightbickel
http:/www.titleadvisor.com
206-484-1976

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