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</o:shapelayout></xml><![endif]--></head><body lang=EN-US link="#0563C1" vlink="#954F72"><div class=WordSection1><p class=MsoNormal><span style='color:#1F497D'>Property taxes are a first lien; the foreclosure will wipe out your client’s deed of trust.<o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'>There is no redemption from the tax sale. There are certain rights to challenge the tax sale, due to lack of notice or a claim of incapacity for instance, but they are extremely limited.<o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'>If your client buys at the tax sale the client will have a three year period where it will be difficult to obtain title insurance (due to the right to challenge the sale referenced above.)<o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'>Your client’s deed of trust probably contains a provision allowing the client to pay the delinquent taxes and add the amount paid to the balance owing. This would usually also constitute a further default on the obligation.<o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'>The best course may be for the client to pay the taxes and foreclose.<o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='color:#1F497D'>I would be interested in reading other ideas.<o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'><o:p> </o:p></span></p><div><p class=MsoNormal><span style='font-family:HelveticaNeueETW01-55Rg;color:#1F497D'>John McCrady<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:HelveticaNeueETW01-55Rg;color:#1F497D'>Counsel</span><span style='color:#1F497D'><o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'>Puget Sound Title Company<o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'>5350 Orchard Street West<o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'>University Place WA 98466<o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'>253-476-5721<o:p></o:p></span></p></div><p class=MsoNormal><span style='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>From:</b> wsbarp-bounces@lists.wsbarppt.com [mailto:wsbarp-bounces@lists.wsbarppt.com] <b>On Behalf Of </b>Jim Doran<br><b>Sent:</b> Friday, July 24, 2015 8:35 AM<br><b>To:</b> 'WSBA Real Property Listserv' <wsbarp@lists.wsbarppt.com><br><b>Subject:</b> [WSBARP] Tax Sale<o:p></o:p></p></div></div><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><span style='font-size:12.0pt'>Listies:<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt'>I have dealt with HOA line foreclosure Sheriff’s Sales but never a county property tax sale.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt'>Client has a Note and DOT with a balance of $15,000 +/-on it. The deadbeat is about $4,000 behind on payments and is behind $8,000 +/- on real property taxes and this October if the taxes are not paid, at least in part, there will be a tax auction.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt'>If someone buys the property at the County Tax Sale (I presume conducted by the Sheriff) do they take the property subject to my clients Note and DOT? Does the deadbeat have a right of redemption for one year?<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt'>Can my client buy the place at the Tax Sale and get rid of the deadbeat? Since client will have to pay the property taxes anyway if he forecloses, can he use the County Tax Sale as a way to get rid of the deadbeat. If the client buys the property at the Tax Sale he takes it subject to his own Note and DOT which is fine. If the deadbeat wants to redeem the property he will have to pay my client. How can my client lose?<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt'>What am I missing here? (I am sure that I am missing something.)<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt'>James R. Doran<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt'>Attorney at Law<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt'>100 E. Pine Street – Suite 205<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt'>Bellingham, WA 98225<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt'>(360)393-9506<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt'><a href="mailto:jim@doranlegal.com">jim@doranlegal.com</a><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt'><a href="http://www.doranlegal.com">www.doranlegal.com</a><o:p></o:p></span></p><p class=MsoNormal><o:p> </o:p></p></div></body></html>