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<DIV style="FONT-SIZE: 12pt; FONT-FAMILY: 'Calibri'; COLOR: #000000">
<DIV>Thank you Eric and John</DIV>
<DIV> </DIV>
<DIV>No, I didn’t get any responses... very helpful.</DIV>
<DIV> </DIV>
<DIV>I had not thought about “if the contract calls for attorney fees then they
pay the non-party’s.” and John cites the statute 4.84.340 that so holds.
<IMG class="wlEmoticon wlEmoticon-smile"
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alt=Smile src="cid:69176D50C92E4AD7B4C3546831A5E110@JoshPC"></DIV>
<DIV> </DIV>
<DIV>My main concern was a dim recollection that there is authority that a
secured party can foreclose a lien even if the underlying debt is not
owing. And I have heard that if there is no debt, there is no such
possibility. </DIV>
<DIV> </DIV>
<DIV>I am trying to keep my fees down for the client, particularly here, where
all they have to do is make the claim on their title insurance. So I
haven’t taken the time to research that.</DIV>
<DIV> </DIV>
<DIV>Thanks!</DIV>
<DIV> </DIV>
<DIV>Josh</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
style='FONT-SIZE: small; TEXT-DECORATION: none; FONT-FAMILY: "Calibri"; FONT-WEIGHT: normal; COLOR: #000000; FONT-STYLE: normal; DISPLAY: inline'>
<DIV style="FONT: 10pt tahoma">
<DIV> </DIV>
<DIV style="BACKGROUND: #f5f5f5">
<DIV style="font-color: black"><B>From:</B> <A title=Eric@sayrelawoffices.com
href="mailto:Eric@sayrelawoffices.com">Eric Nelsen</A> </DIV>
<DIV><B>Sent:</B> Friday, November 14, 2014 1:14 PM</DIV>
<DIV><B>To:</B> <A title=wsbarp@lists.wsbarppt.com
href="mailto:wsbarp@lists.wsbarppt.com">WSBA Real Property Listserv</A> </DIV>
<DIV><B>Subject:</B> Re: [WSBARP] defending and judicial foreclosure, no debt
owing by defendants</DIV></DIV></DIV>
<DIV> </DIV></DIV>
<DIV
style='FONT-SIZE: small; TEXT-DECORATION: none; FONT-FAMILY: "Calibri"; FONT-WEIGHT: normal; COLOR: #000000; FONT-STYLE: normal; DISPLAY: inline'>
<DIV class=WordSection1>
<P class=MsoNormal><SPAN
style='FONT-SIZE: 11pt; FONT-FAMILY: "Calibri","sans-serif"; COLOR: #1f497d'>Josh,
did you get any responses to this? If it's true that the borrower/parents had
only a life estate in the property at time of the loan, and lender's security
interest therefore vanished when they died, then I think you can set up a CR 11
claim. There's case law somewhere...the CR 11 obligation is ongoing, and if the
suit was filed erroneously and plaintiff is given clear information that it the
suit is not proper, then their failure to dismiss immediately is a violation of
CR 11--by persisting in a claim that is clearly not well-grounded in
fact.<o:p></o:p></SPAN></P>
<P class=MsoNormal><SPAN
style='FONT-SIZE: 11pt; FONT-FAMILY: "Calibri","sans-serif"; COLOR: #1f497d'><o:p></o:p></SPAN> </P>
<P class=MsoNormal><SPAN
style='FONT-SIZE: 11pt; FONT-FAMILY: "Calibri","sans-serif"; COLOR: #1f497d'>I
also think that SJ is appropriate on both issues--no personal liability of
defendants, no valid lien on the real property. No relevant facts seem to be in
dispute. But I'd sure also ask for CR 11 sanctions or find another hook for
attorney fees as well. Maybe the case law that says, if a plaintiff sues on a
contract that allows for attorney fees and defendant turns out to not be a party
to the contract (or defense is based on rescission or something else that
renders the contract terms moot), the defendant can still ask for attorney fees
based on that contract? At least I remember some case law that says something
like that.<o:p></o:p></SPAN></P>
<P class=MsoNormal><SPAN
style='FONT-SIZE: 11pt; FONT-FAMILY: "Calibri","sans-serif"; COLOR: #1f497d'><o:p></o:p></SPAN> </P>
<P class=MsoNormal><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"; COLOR: #1f497d'>Sincerely,<o:p></o:p></SPAN></P>
<P class=MsoNormal><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"; COLOR: #1f497d'><o:p></o:p></SPAN> </P>
<P class=MsoNormal><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"; COLOR: #1f497d'>Eric<o:p></o:p></SPAN></P>
<P class=MsoNormal><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"; COLOR: #1f497d'><o:p></o:p></SPAN> </P>
<P class=MsoNormal><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"; COLOR: #1f497d'>Eric C.
Nelsen<o:p></o:p></SPAN></P>
<P class=MsoNormal><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"; COLOR: #1f497d'>SAYRE LAW OFFICES,
PLLC<o:p></o:p></SPAN></P>
<P class=MsoNormal><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"; COLOR: #1f497d'>1320 University
St<o:p></o:p></SPAN></P>
<P class=MsoNormal><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"; COLOR: #1f497d'>Seattle WA
98101-2837<o:p></o:p></SPAN></P>
<P class=MsoNormal><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"; COLOR: #1f497d'>phone
206-625-0092<o:p></o:p></SPAN></P>
<P class=MsoNormal><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"; COLOR: #1f497d'>fax
206-625-9040<o:p></o:p></SPAN></P>
<P class=MsoNormal><SPAN
style='FONT-SIZE: 11pt; FONT-FAMILY: "Calibri","sans-serif"; COLOR: #1f497d'><o:p></o:p></SPAN> </P>
<P class=MsoNormal><SPAN
style='FONT-SIZE: 11pt; FONT-FAMILY: "Calibri","sans-serif"; COLOR: #1f497d'><o:p></o:p></SPAN> </P>
<P class=MsoNormal><SPAN
style='FONT-SIZE: 11pt; FONT-FAMILY: "Calibri","sans-serif"; COLOR: #1f497d'><o:p></o:p></SPAN> </P>
<DIV>
<DIV
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<P class=MsoNormal><B><SPAN
style='FONT-SIZE: 10pt; FONT-FAMILY: "Tahoma","sans-serif"'>From:</SPAN></B><SPAN
style='FONT-SIZE: 10pt; FONT-FAMILY: "Tahoma","sans-serif"'>
wsbarp-bounces@lists.wsbarppt.com [mailto:wsbarp-bounces@lists.wsbarppt.com]
<B>On Behalf Of </B>Josh Grant<BR><B>Sent:</B> Wednesday, November 12, 2014 3:29
PM<BR><B>To:</B> wsbar<BR><B>Subject:</B> [WSBARP] defending and judicial
foreclosure, no debt owing by defendants<o:p></o:p></SPAN></P></DIV></DIV>
<P class=MsoNormal><o:p></o:p> </P>
<DIV>
<DIV>
<DIV>
<P class=MsoNormal><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"; COLOR: black'>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...”<o:p></o:p></SPAN></P></DIV>
<DIV>
<P class=MsoNormal><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"; COLOR: black'> <o:p></o:p></SPAN></P></DIV>
<DIV>
<P class=MsoNormal><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"; COLOR: black'>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.<o:p></o:p></SPAN></P></DIV>
<DIV>
<P class=MsoNormal><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"; COLOR: black'> <o:p></o:p></SPAN></P></DIV>
<DIV>
<P class=MsoNormal><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"; COLOR: black'>Plaintiff’s attorney
(appears to be a collection law firm??) has ignored my
correspondence.<o:p></o:p></SPAN></P></DIV>
<DIV>
<P class=MsoNormal><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"; COLOR: black'> <o:p></o:p></SPAN></P></DIV>
<DIV>
<P class=MsoNormal><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"; COLOR: black'>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”.<o:p></o:p></SPAN></P></DIV>
<DIV>
<P class=MsoNormal><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"; COLOR: black'> <o:p></o:p></SPAN></P></DIV>
<DIV>
<P class=MsoNormal><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"; COLOR: black'>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”.<o:p></o:p></SPAN></P></DIV>
<DIV>
<P class=MsoNormal><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"; COLOR: black'> <o:p></o:p></SPAN></P></DIV>
<DIV>
<P class=MsoNormal><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"; COLOR: black'>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?<o:p></o:p></SPAN></P></DIV>
<DIV>
<P class=MsoNormal><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"; COLOR: black'>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??<o:p></o:p></SPAN></P></DIV>
<DIV>
<P class=MsoNormal><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"; COLOR: black'> <o:p></o:p></SPAN></P></DIV>
<DIV>
<P class=MsoNormal><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"; COLOR: black'>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?<o:p></o:p></SPAN></P></DIV>
<DIV>
<P class=MsoNormal><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"; COLOR: black'> <o:p></o:p></SPAN></P></DIV>
<DIV>
<P class=MsoNormal><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"; COLOR: black'>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?<o:p></o:p></SPAN></P></DIV>
<DIV>
<P class=MsoNormal><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"; COLOR: black'> <o:p></o:p></SPAN></P></DIV>
<DIV>
<P class=MsoNormal><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"; COLOR: black'>They have asked for
quiet title against everyone claiming under the decedents.
<o:p></o:p></SPAN></P></DIV>
<DIV>
<P class=MsoNormal><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"; COLOR: black'> <o:p></o:p></SPAN></P></DIV>
<DIV>
<P class=MsoNormal><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"; COLOR: black'>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.<o:p></o:p></SPAN></P></DIV>
<DIV>
<P class=MsoNormal><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"; COLOR: black'> <o:p></o:p></SPAN></P></DIV>
<DIV>
<P class=MsoNormal><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"; COLOR: black'>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.<o:p></o:p></SPAN></P></DIV>
<DIV>
<P class=MsoNormal><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"; COLOR: black'> <o:p></o:p></SPAN></P></DIV>
<DIV>
<P class=MsoNormal><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"; COLOR: black'>sorry this is so
long.<o:p></o:p></SPAN></P></DIV>
<DIV>
<P class=MsoNormal><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"; COLOR: black'> <o:p></o:p></SPAN></P></DIV>
<DIV>
<P class=MsoNormal><SPAN
style='FONT-FAMILY: "Calibri","sans-serif"; COLOR: black'>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<o:p></o:p></SPAN></P></DIV></DIV></DIV></DIV>
<P>
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