<html xmlns:v="urn:schemas-microsoft-com:vml" xmlns:o="urn:schemas-microsoft-com:office:office" xmlns:w="urn:schemas-microsoft-com:office:word" xmlns:m="http://schemas.microsoft.com/office/2004/12/omml" xmlns="http://www.w3.org/TR/REC-html40"><head><meta http-equiv=Content-Type content="text/html; charset=us-ascii"><meta name=Generator content="Microsoft Word 15 (filtered medium)"><style><!--
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</o:shapelayout></xml><![endif]--></head><body lang=EN-US link="#0563C1" vlink="#954F72"><div class=WordSection1><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>