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<DIV>My client and his parents have been sued with a judicial foreclosure
complaint of a 1998 loan. Plaintiff is a US Bank NA “as trustee under the
pooling and servicing agreement...”</DIV>
<DIV> </DIV>
<DIV>The parents have been dead for well over 2 years. My client didn’t
sign on the loan. The parents signed the loan, but they didn’t own the
property when the loan was made.. as they had previously given the house
to my client. they reserved a life estate in the gift deed which was
recorded before 1998. Obviously the life estate is now over. I
assume that the lien on the life estate is also over. There was a lender’s
policy issued to the Plaintiff for $76,500. I have been trying to get them
to claim proceeds from that lender’s policy for years, all I got for my
efforts was this judicial foreclosure of my client’s land. They now claim
the $63,041 principal owing plus interest of $18,253.46 interest so they are
claiming a little more than the title insurance would pay them (about $8000).
However, had they claimed the insurance proceeds a couple of years ago, when I
told them about it, the title insurance proceeds would have covered all pr and
interest.</DIV>
<DIV> </DIV>
<DIV>Plaintiff’s attorney (appears to be a collection law firm??) has ignored my
correspondence.</DIV>
<DIV> </DIV>
<DIV>I have confirmed that the lender’s policy is in effect, the title company
admits they goofed, and they seem ready to pay. They denied my claim to
defend the foreclosure (correctly) saying that I didn’t represent the
insured basically saying “the lender may have a claim but you
don’t”.</DIV>
<DIV> </DIV>
<DIV>So my question is what can I threaten to do , if the collection attorney
continues to ignore common sense? I am going to send another letter that says
“go grab the insurance money and drop this suit”.</DIV>
<DIV> </DIV>
<DIV>Can I threaten Summary Judgment because no one they sued owes any money?
and the real estate lien is invalid because there is no valid underlying
debt?</DIV>
<DIV>CR 11 attorney fees, if they resist the summary judgment (Given all
the info I have given one collection bureau after another through the years,
maybe CR 11 will apply to the filing of the judicial foreclosure complaint
itself even if they don’t resist??</DIV>
<DIV> </DIV>
<DIV>I think this really boils down to whether they can foreclose a lien where
there is no underlying debt when they filed their complaint? and if so,
don’t they have to offset the insurance proceeds which they can claim if they
would do so?</DIV>
<DIV> </DIV>
<DIV>If they can foreclose their old lien, then they could get my client’s house
back, and then go claim the title insurance proceeds as well?</DIV>
<DIV> </DIV>
<DIV>They have asked for quiet title against everyone claiming under the
decedents. </DIV>
<DIV> </DIV>
<DIV>Maybe the answer and the summary judgment we file will say, “no quiet title
to my client” and award CR 11 sanctions for not simply filing for the title
insurance, and again, because there is no valid underlying loan.</DIV>
<DIV> </DIV>
<DIV>No estate was ever filed. My client could file their will and deny
any creditors claim as not owing. But I don’t think that will quiet title
to the house.</DIV>
<DIV> </DIV>
<DIV>sorry this is so long.</DIV>
<DIV> </DIV>
<DIV style="FONT-SIZE: 12pt; FONT-FAMILY: 'Calibri'; COLOR: #000000">Joshua F.
Grant, PS<BR>Attorney at Law<BR>P. O. Box 619<BR>Wilbur, WA 99185<BR>tel 509 647
5578<BR>fax 509 647 2734<BR></DIV></DIV></DIV></BODY></HTML>