[WSBARP] Interest in Property

[Kary Krismer]

One of those two cases and statutory amendment  is likely what I was 
referring to in my response, assuming the statute was amended in 
response to the one of those cases.  But without reading the cases, the 
mortgage creditor was not allowed to redeem due to the specific language 
of the statute (referring to time rather than priority as I recall), and 
that quirk has since been fixed to avoid a similar result in the future.

Unfortunately Sheppards (if that still exists) doesn't pick up 
situations where the legislature overrules a case, which is why I 
brought it up.  ;-)

Kary L. Krismer
206 723-2148

On 1/20/2023 12:05 PM, Patrick McDonald wrote:
>
> Many community association liens (e.g., condominium associations 
> governed under RCW 64.34) are senior to mortgages/deeds of trust, but 
> their priority is limited to a certain dollar amount. If a lender 
> doesn’t satisfy the association’s lien priority prior to the 
> association conducting a sheriff’s sale, the lender’s mortgage/deed of 
> trust is eliminated. However, the lender would be a valid 
> redemptioner. The redemption statute was specifically amended in 2013 
> or so to make sure lenders could redeem following a sheriff’s sale. 
> See /Summerhill Village Homeowners Association v. Roughley/ and /BAC 
> Home Loans Servicing LP v. Fulbright/ for more detailed analysis.
>
> In my experience, condominium associations used to eliminate lenders’ 
> deeds of trusts from properties somewhat regularly simply because 
> lenders were incapable of timey responding after being served with 
> process (probably due in part to the MERS system). But about 10 years 
> ago lenders started getting much better at responding to lawsuits and 
> paying off the associations’ lien priority to protect their deeds of 
> trust.
>
> Patrick McDonald
>
> *_______________________*
>
> *Pody & McDonald, PLLC*
>
> 1000 Second Avenue, Ste. 1605
>
> Seattle, WA 98104
>
> T: 206-467-1559
>
> F: 206-467-4489
>
> *From:* wsbarp-bounces at lists.wsbarppt.com 
> <wsbarp-bounces at lists.wsbarppt.com> *On Behalf Of *Kary Krismer
> *Sent:* January 20, 2023 11:02 AM
> *To:* wsbarp at lists.wsbarppt.com
> *Subject:* Re: [WSBARP] Interest in Property
>
> There is a case from about 8-10 years ago where the HOA's foreclosure 
> wiped out the mortgage debt, but that was due to an unintended quirk 
> in the statutory language, such language having since been corrected.
>
> Kary L. Krismer
> 206 723-2148
>
> On 1/20/2023 9:36 AM, Joseph McIntosh wrote:
>
>
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