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<p class="MsoNormal"><span style="color:#1F497D">Please reply to list--I haven't done this myself, but I think it's possible to give a notice of default and demand cure, especially if the deferred maintenance is approaching statutory waste in its magnitude.
If the lender has evidence that the value of the property is being significantly impaired as collateral, I think that would show sufficient prejudice to allow foreclosure before it gets any worse. And doing it by nonjudicial procedure would probably be efficient,
since it puts the burden on the borrower to try to halt the proceeding.<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">Sincerely,<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">Eric<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">Eric C. Nelsen<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D">SAYRE LAW OFFICES, PLLC<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D">1320 University St<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D">Seattle WA 98101-2837<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D">phone 206-625-0092<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D">fax 206-625-9040<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"><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>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>
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<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>
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