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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'>The non-judicial trustee may drag her or his feet before proceeding with foreclosure for non-monetary default, but rcw 61.24.090(3) addresses cure necessary for a default occasioned by other than a failure to make payments so this was contemplated when adopting rcw 61.24. The trustee should make it very clear about what constitutes cure and come up with an objective performance standard. With so much recent focus on trustee behaviors the trustee should be more flexible in extending cure times than with payment defaults.<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'>A more cautious approach is often for a judicial foreclosure with or without a request for appointment of a receiver. But thinking backward, how will the foreclosed party exercise his redemption rights unless the cost of the nonmonetary default is specified in the fof, col and/or judgment? What if there is a judgment for the cost to cure but the work isn’t done?<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'>It takes me just about the same amount of time to draft a judicial foreclosure and summary judgment pleadings as the non-judicial foreclosure notices, and there are not nearly as many recent decisions critical of judicial foreclosure processes. But there is a redemption right that needs to be planned for with the judicial foreclosure.<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'><o:p> </o:p></span></p><div><div style='border:none;border-top:solid #B5C4DF 1.0pt;padding:3.0pt 0in 0in 0in'><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>Paul Neumiller<br><b>Sent:</b> Wednesday, February 03, 2016 1:53 PM<br><b>To:</b> wsbarp@lists.wsbarppt.com<br><b>Subject:</b> [WSBARP] DOT and Non-monetary Defaults<o:p></o:p></span></p></div></div><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Listmates: I have been pondering this problem for a long time. Client is a seller-carryback holder of a deed of trust and note. Debtor is not in default of note installments but is allowing the real property secured by the lien of the DOT to deteriorate. Waaaay too much deferred maintenance (i.e. leaking roof in residence, dilapidated barns, etc.). The note doesn’t mature for another 20 years. Parties used the standard WA residential DOT requiring that debtor “keep the property in good condition and repair” and an acceleration of debt if the debtor fails to perform a duty agreed to in the DOT. <o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>So how does this work? Has anyone just tried a non-judicial foreclosure and “damn the torpedoes”? Maybe, have the creditor go in and fix everything (not sure the creditor has the right to cure non-monetary defaults) and then bring a non-judicial foreclosure based on the repair costs, OR bring a judicial foreclosure and have lots of pictures and evidence of deferred maintenance? That sure seems like a can of worms and litigator’s dream. Any ideas?<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p></div></body></html>