[WSBARP] Foreclosure Question

[Douglas Owens]

Dear James, as I understand it the trustee’s sale of the second deed of trust will wipe out only the interest of the third deed of trust holder.  If the proceeds of the sale of the second deed of trust exceed the amount of the loan secured by that deed of trust then the statute requires the excess proceeds to be deposited into the registry of the court for claim by anyone entitled to them, including the holder of the third deed of trust.  The trustee’s sale of the second deed of trust does not affect the first deed of trust and the buyer at the trustee’s sale will take “subject to” the first deed of trust.  Yours truly, Doug Owens

On Nov 16, 2021, at 12:51 PM, James W. Spencer <jamess at brothershenderson.com<mailto:jamess at brothershenderson.com>> wrote:

Thank you all for your input on this!

James W. Spencer
Attorney at Law
Brothers & Henderson, P.S.
2722 Eastlake Avenue East, Suite 200
Seattle, Washington 98102
Phone: (206) 324-4300 x106
Fax: (206) 324-3106
e-mail:  jamess at brothershenderson.com<mailto:jamess at brothershenderson.com>
www.brothershenderson.com<http://www.brothershenderson.com/>
pronouns: he/him

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The information transmitted in this e-mail message and attachments is attorney-client information, is privileged or confidential material and is intended only for the use of the individual or entity named above. You are hereby notified that any disclosure, copying, distribution, review by or taking of any action in reliance on the contents of this e-mail information by unauthorized persons is strictly prohibited. All personal messages are solely the views of the sender and are not to be attributed to Brothers & Henderson, P.S. If you have received this transmission in error, immediately notify the sender by reply e-mail and permanently delete this transmission and all copies including attachments.

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 James W. Spencer
Sent: Friday, November 5, 2021 10:25 AM
To: 'wsbarp at lists.wsbarppt.com<mailto:wsbarp at lists.wsbarppt.com>' <wsbarp at lists.wsbarppt.com<mailto:wsbarp at lists.wsbarppt.com>>
Subject: [WSBARP] Foreclosure Question

Greetings All:

Since I (almost) exclusively work on the T&E side of things, I have a question for you dirt attorneys about what, practically, happens at foreclosure for the various property creditors.

In the case at hand, there are three deeds of trust against the real property. Significant equity, so paying off all three should be no problem. The second DOT holder is initiating foreclosure. Do DOT holders 1 and 3 need to do anything? Is there something like escrow at a Trustee’s sale that will ensure that all three promissory notes are satisfied?

Your insights are appreciated. DOT holder 3 may need legal assistance if that is the best advice, so referrals (including self) are also appreciated.

Thank you,
James

James W. Spencer
Attorney at Law
Brothers & Henderson, P.S.
2722 Eastlake Avenue East, Suite 200
Seattle, Washington 98102
Phone: (206) 324-4300 x106
Fax: (206) 324-3106
e-mail: jamess at brothershenderson.com<mailto:jamess at brothershenderson.com>
www.brothershenderson.com<http://www.brothershenderson.com/>
pronouns: he/him

<image001.jpg>
The information transmitted in this e-mail message and attachments is attorney-client information, is privileged or confidential material and is intended only for the use of the individual or entity named above. You are hereby notified that any disclosure, copying, distribution, review by or taking of any action in reliance on the contents of this e-mail information by unauthorized persons is strictly prohibited. All personal messages are solely the views of the sender and are not to be attributed to Brothers & Henderson, P.S. If you have received this transmission in error, immediately notify the sender by reply e-mail and permanently delete this transmission and all copies including attachments.

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