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</o:shapelayout></xml><![endif]--></head><body lang=EN-US link=blue vlink=purple><div class=WordSection1><p class=MsoNormal><span style='font-family:"Calibri",sans-serif;color:#1F497D'>You make me laugh. My negotiation with Ban k of America to date has been to use their own inefficiencies against them. Like stretch out the foreclosure process for three years. “too big to pay attention.” Or, “the lights are on but no one is home”.<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Calibri",sans-serif;color:#1F497D'><o:p> </o:p></span></p><div><p class=MsoNormal><span style='font-family:"Calibri",sans-serif;color:#1F497D'>James R. Doran<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Calibri",sans-serif;color:#1F497D'>Attorney at Law<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>100 E. Pine Street – Suite 205<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>Bellingham, WA 98225<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>(360)393-9506<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Calibri",sans-serif;color:#1F497D'><a href="mailto:jim@doranlegal.com"><span style='color:#0563C1'>jim@doranlegal.com</span></a><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>www.doranlegal.com<o:p></o:p></span></p></div><p class=MsoNormal><span style='font-family:"Calibri",sans-serif;color:#1F497D'><o:p> </o:p></span></p><div><div style='border:none;border-top:solid #E1E1E1 1.0pt;padding:3.0pt 0in 0in 0in'><p class=MsoNormal><b><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'>From:</span></b><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'> wsbarp-bounces@lists.wsbarppt.com [mailto:wsbarp-bounces@lists.wsbarppt.com] <b>On Behalf Of </b>Paul Neumiller<br><b>Sent:</b> Friday, May 1, 2015 11:38 AM<br><b>To:</b> 'WSBA Real Property Listserv'<br><b>Subject:</b> Re: [WSBARP] Condo Foreclosure Basics<o:p></o:p></span></p></div></div><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>Correct. I came up with the same conclusions when I was personally considering purchasing a condo at a sheriff’s sale. Fortunately, when I called the Association’s attorney, he tipped me off to review the court file before I showed up to bid. <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'>“Negotiate something with Bank of America” reminds of the quote from Game of Thrones “If you think this has a happy ending, you haven’t been paying attention.”<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'>However, as you noted, BofA may foreclose tomorrow, or in five years, or never. Your client is paying $15k to take that risk.<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><div><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:white'><o:p> </o:p></span></p></div><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'><o:p> </o:p></span></p><div><div style='border:none;border-top:solid #E1E1E1 1.0pt;padding:3.0pt 0in 0in 0in'><p class=MsoNormal><b><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'>From:</span></b><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'> <a href="mailto:wsbarp-bounces@lists.wsbarppt.com">wsbarp-bounces@lists.wsbarppt.com</a> [<a href="mailto:wsbarp-bounces@lists.wsbarppt.com">mailto:wsbarp-bounces@lists.wsbarppt.com</a>] <b>On Behalf Of </b>Jim Doran<br><b>Sent:</b> Friday, May 1, 2015 10:58 AM<br><b>To:</b> 'WSBA Real Property Listserv'<br><b>Subject:</b> Re: [WSBARP] Condo Foreclosure Basics<o:p></o:p></span></p></div></div><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><span style='font-family:"Calibri",sans-serif;color:#1F497D'>I just looked at the Court pleadings. Bank of America was named and did establish its super priority lien with the Condo Association. It looks like Bank of America retains its security by the DOT. <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'>Does this mean that my client will lose her $15,000 payment made to the Sherriff when Bank of America eventually forecloses on their DOT. (She hasn’t coughed up the money yet.)<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'>That’s what it is starting to look like. Bank of America does not have to redeem to foreclose.<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'>My advice would be that she will most likely lose the money unless she can negotiate something with Bank of America. But that is a big IF.<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'>Do I got it right?<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'>Of course she might be able to live there for a year or so while Bank of America gets around to foreclosing.<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Calibri",sans-serif;color:#1F497D'><o:p> </o:p></span></p><div><p class=MsoNormal><span style='font-family:"Calibri",sans-serif;color:#1F497D'>James R. Doran<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Calibri",sans-serif;color:#1F497D'>Attorney at Law<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>100 E. Pine Street – Suite 205<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>Bellingham, WA 98225<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>(360)393-9506<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Calibri",sans-serif;color:#1F497D'><a href="mailto:jim@doranlegal.com"><span style='color:#0563C1'>jim@doranlegal.com</span></a><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Calibri",sans-serif;color:#1F497D'><a href="http://www.doranlegal.com">www.doranlegal.com</a><o:p></o:p></span></p></div><p class=MsoNormal><span style='font-family:"Calibri",sans-serif;color:#1F497D'><o:p> </o:p></span></p><div><div style='border:none;border-top:solid #E1E1E1 1.0pt;padding:3.0pt 0in 0in 0in'><p class=MsoNormal><b><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'>From:</span></b><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'> <a href="mailto:wsbarp-bounces@lists.wsbarppt.com">wsbarp-bounces@lists.wsbarppt.com</a> [<a href="mailto:wsbarp-bounces@lists.wsbarppt.com">mailto:wsbarp-bounces@lists.wsbarppt.com</a>] <b>On Behalf Of </b>Patrick McDonald<br><b>Sent:</b> Friday, May 1, 2015 10:43 AM<br><b>To:</b> WSBA Real Property Listserv<br><b>Subject:</b> Re: [WSBARP] Condo Foreclosure Basics<o:p></o:p></span></p></div></div><p class=MsoNormal><o:p> </o:p></p><div><p class=MsoNormal>It completely depends on whether the association has lien priority over the deed of trust as provided in RCW 64.34.364(3), and if so, whether the lender appeared in the lawsuit and paid off the association’s lien priority. <o:p></o:p></p></div><div><p class=MsoNormal><o:p> </o:p></p></div><div><p class=MsoNormal>If the association does <u>not</u> have lien priority, then the lender would not have been named as a defendant in the lawsuit, and your client takes his or her interest subject to the deed of trust. If and when the lender forecloses, it will eliminate your client’s interest in the unit. The result is the same if the Association does have lien priority but the lender paid it off and was dismissed from the lawsuit. In either case, the lender does not have to avail itself of the redemption statute because its deed of trust is senior to the interest your client purchased at the sheriff’s sale. <o:p></o:p></p></div><div><p class=MsoNormal><o:p> </o:p></p></div><div><p class=MsoNormal>If the Association has lien priority, named the lender as a defendant in the lawsuit, and the lender did not satisfy the Association’s lien priority, then the lender would have to redeem from your client by paying off the amount bid plus interest and potentially some additional amounts as provided in RCW 6.23.020. The legislature changed the redemption statute to allow lenders to redeem in the wake of the <u>Summerhill Village</u><i> </i>case in 2012. <o:p></o:p></p></div><div><p class=MsoNormal><o:p> </o:p></p></div><div><p class=MsoNormal>If the lender (or foreclosed owner) did not redeem, then your client would own the unit free and clear of their interests. <o:p></o:p></p></div><div><p class=MsoNormal><o:p> </o:p></p></div><div><p class=MsoNormal>This is somewhat of a big subject with a lot of variables at play, but those are the very basics. <o:p></o:p></p></div><div><p class=MsoNormal><o:p> </o:p></p></div><div><p class=MsoNormal>Patrick McDonald<o:p></o:p></p></div><div><div><div><div><p class=MsoNormal style='margin-bottom:12.0pt'><span style='color:black'>________________________<br><b>Pody & McDonald, PLLC</b><br>1200 Fifth Avenue, Suite 1410<br>Seattle, WA 98101-3106<br>T: 206-467-1559<br>F: 206-467-4489<o:p></o:p></span></p></div></div></div><p class=MsoNormal><o:p> </o:p></p><div><div><p class=MsoNormal>On May 1, 2015, at 10:00 AM, Jim Doran <<a href="mailto:jim@doranlegal.com">jim@doranlegal.com</a>> wrote:<o:p></o:p></p></div><p class=MsoNormal style='margin-bottom:12.0pt'><o:p> </o:p></p><blockquote style='margin-top:5.0pt;margin-bottom:5.0pt'><div><div><p class=MsoNormal><span style='font-family:"Calibri",sans-serif'>I have client that just bought a condo at a Sherriff’s sale for $15,000 which were the dues owed by the owner. The underlying debt is with Bank of America for $120,000 but the property has a value of $70,000. B of A did not show up at the sale. </span><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'><o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-family:"Calibri",sans-serif'> </span><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'><o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-family:"Calibri",sans-serif'>What happens? Client gets the property subject to the Bank of America deed of trust, right? </span><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'><o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-family:"Calibri",sans-serif'> </span><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'><o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-family:"Calibri",sans-serif'>So, the deadbeat prior owner won’t pay, that’s for sure. My client doesn’t want to pay $120,000 to B of A. So I expect there will be a foreclosure by bank of America on the new owner.</span><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'><o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-family:"Calibri",sans-serif'> </span><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'><o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-family:"Calibri",sans-serif'>What is the function of the “Redemption Rights” in the Bank? Does the Bank have to buy the place back from my client for what she paid at the sale? </span><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'><o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-family:"Calibri",sans-serif'> </span><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'><o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-family:"Calibri",sans-serif'>A quick overview of how this works would be appreciated. Just the framework.</span><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'><o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-family:"Calibri",sans-serif'> </span><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'><o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-family:"Calibri",sans-serif'>Thanks,</span><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'><o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-family:"Calibri",sans-serif'> </span><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'><o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-family:"Calibri",sans-serif'>James R. Doran</span><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'><o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-family:"Calibri",sans-serif'>Attorney at Law</span><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'><o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Calibri",sans-serif'>100 E. Pine Street – Suite 205</span><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'><o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Calibri",sans-serif'>Bellingham, WA 98225</span><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'><o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Calibri",sans-serif'>(360)393-9506</span><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'><o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Calibri",sans-serif'><a href="mailto:jim@doranlegal.com"><span style='color:#954F72'>jim@doranlegal.com</span></a></span><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'><o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Calibri",sans-serif'><a href="http://www.doranlegal.com/"><span style='color:#954F72'>www.doranlegal.com</span></a></span><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'><o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif'> <o:p></o:p></span></p></div><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Helvetica",sans-serif'>_______________________________________________<br>WSBARP mailing list<br><a href="mailto:WSBARP@lists.wsbarppt.com"><span style='color:#954F72'>WSBARP@lists.wsbarppt.com</span></a><br><a href="http://mailman.fsr.com/mailman/listinfo/wsbarp"><span style='color:#954F72'>http://mailman.fsr.com/mailman/listinfo/wsbarp</span></a><o:p></o:p></span></p></div></blockquote></div><p class=MsoNormal><o:p> </o:p></p></div></div></body></html>