[WSBARP] Interest in Property

[Bryce Dille]

The average practitioner should defer  in the area of collecting on assessment liens to attorneys that specialize in association law, both as it applies to plat, communities and condominiums as the rules are different as to the two types of communities formed prior to July 1, 2018. Although they are now treated the same as to communities formed after that date there still is a difference. between forclosing judicially, and non-judicially as to the associations lien priority.

Bryce H. Dille
Dille Law, PLLC
Office: 360-350-0270
Cell: 253-579-5561

** Please note that I use the dictation feature of my iPhone and that sometimes everything I say does not get properly translated**

On Jan 21, 2023, at 9:00 AM, Roger Hawkes <roger at skyvalleylawyers.com> wrote:


Shepards???  A blast from the past for sure. Idk if it still exists; I only saw it in paper form😊

From: wsbarp-bounces at lists.wsbarppt.com <wsbarp-bounces at lists.wsbarppt.com> On Behalf Of Kary Krismer
Sent: Saturday, January 21, 2023 4:56 AM
To: wsbarp at lists.wsbarppt.com
Subject: Re: [WSBARP] Interest in Property


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<mailto:wsbarp-bounces at lists.wsbarppt.com> <wsbarp-bounces at lists.wsbarppt.com><mailto:wsbarp-bounces at lists.wsbarppt.com> On Behalf Of Kary Krismer
Sent: January 20, 2023 11:02 AM
To: wsbarp at lists.wsbarppt.com<mailto: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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