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<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">Jeanne,
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">It is my understanding that this has to do with FNMA underwriting requirements so that loans can be sold on the secondary market.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">The super-priority in Washington applies to 6 months of assessments. Generally the mortgage lender will pay the 6 months of assessments and get dismissed from
the case. Note that the state Supreme Court overruled the Court of Appeals in
<i>BAC Home Loans v. Fulbright</i> (and S<i>ummerhill</i>). So if the lender fails to appear/respond and is defaulted, it can redeem the property during the redemption period. The redemption amount is usually much higher than the amount for 6 months of
assessments. <o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">Karen L. Gibbon<br>
Law Offices of Karen L. Gibbon, P.S.<br>
3409 McDougall Avenue, Suite 202<br>
Everett, WA 98201<br>
<br>
Telephone: (425)212-3277 ext 1<br>
Facsimile: (425)212-3280<br>
Email: <a href="mailto:kgibbon@gibbonlaw.com" target="_blank">kgibbon@gibbonlaw.com</a><o:p></o:p></span></p>
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<p class="MsoNormal"><b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif"">From:</span></b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif""> wsbarp-bounces@lists.wsbarppt.com [mailto:wsbarp-bounces@lists.wsbarppt.com]
<b>On Behalf Of </b>Jeanne Dawes<br>
<b>Sent:</b> Monday, March 16, 2015 5:26 PM<br>
<b>To:</b> WSBA Real Property Listserv (wsbarp@lists.wsbarppt.com)<br>
<b>Subject:</b> [WSBARP] CCR question<o:p></o:p></span></p>
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<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal"><span style="font-family:"Calibri","sans-serif"">Dear Listmates:<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Calibri","sans-serif""> <o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Calibri","sans-serif"">What is the rationale for subordinating the homeowner’s association lien/assessments to that of a first mortgage lender? Is it because lender’s will not lend if there is no subordination,
or can the CCR’s not subordinate the lien, and create a preference for unpaid (defaulted) homeowner lien assessments that would have priority over subsequently recorded mortgages?<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif""> </span><span style="font-family:"Calibri","sans-serif""><o:p></o:p></span></p>
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<p class="MsoNormal"><b><i><span style="font-size:18.0pt;font-family:"TypoUpright BT","serif"">Jeanne J.</span></i></b><b><i>
</i></b><b><i><span style="font-size:18.0pt;font-family:"Bella Donna","serif"">Dawes</span></i></b><span style="font-family:"Calibri","sans-serif""><o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial","sans-serif"">Attorney at Law</span><span style="font-family:"Calibri","sans-serif""><o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial","sans-serif"">Gore & Grewe, P.S.</span><span style="font-family:"Calibri","sans-serif""><o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial","sans-serif"">103 E. Indiana Avenue, Suite A</span><span style="font-family:"Calibri","sans-serif""><o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial","sans-serif"">Spokane, WA 99207-2317</span><span style="font-family:"Calibri","sans-serif""><o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial","sans-serif"">Voice: 509-326-7500</span><span style="font-family:"Calibri","sans-serif""><o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial","sans-serif"">Fax: 509-326-7503</span><span style="font-family:"Calibri","sans-serif""><o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif""><a href="mailto:jjdawes@goregrewe.com"><span style="font-size:10.0pt;font-family:"Arial","sans-serif"">jjdawes@goregrewe.com</span></a></span><span style="font-family:"Calibri","sans-serif""><o:p></o:p></span></p>
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