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

Wed Feb 3 08:03:16 PST 2021

I don't think SOL matters.  If you're a lender, and you want ample time for full performance, you negotiate a lengthy maturity.  On loans that have gone unpaid and not seen action for years, the fine print will probably disclose a lengthy maturity.

From: wsbarp-bounces at lists.wsbarppt.com [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Roger Hawkes
Sent: Wednesday, February 03, 2021 7:57 AM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>
Subject: Re: [WSBARP] Release of Deed of Trust/Quiet Title?

I haven't thought of this for a while; but, why don't lenders modify their contracts to refer to a state that has really long sols?

From: wsbarp-bounces at lists.wsbarppt.com<mailto:wsbarp-bounces at lists.wsbarppt.com> <wsbarp-bounces at lists.wsbarppt.com<mailto:wsbarp-bounces at lists.wsbarppt.com>> On Behalf Of Joseph McIntosh
Sent: Wednesday, February 3, 2021 7:43 AM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com<mailto:wsbarp at lists.wsbarppt.com>>
Subject: Re: [WSBARP] Release of Deed of Trust/Quiet Title?

A bankruptcy discharge does not eliminate a secured debt, or its repayment schedule, it just eliminates a remedy - personal recourse.  There's a couple discharge provisions in the code address this.

If there have been 18 years of missed payments, some would be currently time barred by the state's 6 yr statute for enforcement of written contracts, but some not.  The lien still is still intact as to some missed payments that have not yet expired under the statute, and others if they have not yet come due.

From: wsbarp-bounces at lists.wsbarppt.com<mailto:wsbarp-bounces at lists.wsbarppt.com> [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of Kary Krismer
Sent: Wednesday, February 03, 2021 7:14 AM
To: wsbarp at lists.wsbarppt.com<mailto:wsbarp at lists.wsbarppt.com>
Subject: Re: [WSBARP] Release of Deed of Trust/Quiet Title?

I'm not familiar with those appellate court cases, but if the statute of limitations argument is based on due date of periodic payments I have a hard time seeing how due date for a periodic payment could be after it was discharged.  So seemingly the  bankruptcy discharge date would be the latest date for the statute of limitations for all the payments.  But if so, doesn't that line of cases presumably work in favor of the OP's client since all the payments would have been due over 18 years ago?

Also, to the extent that the Bankruptcy Act does have applicable language, it would presumably say that the creditor's claim was the full amount, not just those payments prior to bankruptcy.  I don't see, however, how such provisions would affect a states law SOL.

Kary L. Krismer

206 723-2148
On 2/3/2021 5:58 AM, Joseph McIntosh wrote:
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> [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><mailto: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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