[WSBARP] Release of Deed of Trust/Quiet Title?

[Joseph McIntosh]

A quiet title can be maintained if the statute of limitations for enforcement of the lien is expired.   Commencement of the statue typically depends on when rights contractually accrue, so you would have to look at the contract, and particularly, it's maturity.  If it's an installment thirty year mortgage, there might be some payments that have not yet come due (and rights to enforce that have not accrued), unless there was an event of acceleration.

There is some goofy language from a recent WA appellate court that says a bankruptcy discharge matures a secured loan, although that language has been pretty widely panned, and there's a couple cases in the pipeline seeking correction of that language.  Nothing from the bankruptcy code says a personal discharge matures or accelerates secured debt.

From: wsbarp-bounces at lists.wsbarppt.com [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Samuel M. Meyler
Sent: Tuesday, February 2, 2021 7:41 PM
To: 'WSBA Real Property Listserv' <wsbarp at lists.wsbarppt.com>
Subject: [WSBARP] Release of Deed of Trust/Quiet Title?

Listmates,

Property owner has a 1st and 2nd position mortgage/deeds of trust encumbering the property.  Owner files for bankruptcy in 2012.  Standard Order of Discharge enters.  Owner works out a loan modification with the 1st position lender but does not with the 2nd.  2nd DOT continues to appear on title now that the property is being sold.  It has now been over 18 years since the discharge.  What are the options here?  Has anyone ever had success in getting a lender in this position to release/reconvey?  Should the 2nd DOT be removed via quiet title action?  Thanks for your input.


Samuel M. Meyler
Meyler Legal, PLLC
1700 Westlake Ave. N., Ste. 200
Seattle, Washington 98109
Tel:  206.876.7770
Fax:  206.876.7771
Email:  samuel at meylerlegal.com<mailto:samuel at meylerlegal.com>

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