<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)"><!--[if !mso]><style>v\:* {behavior:url(#default#VML);}
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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'>From the facts given, I agree with you. The discharge eliminates the personal liability of the debtor but does nothing to the lien of the deed of trust.<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>Richard Holland<br><b>Sent:</b> Tuesday, March 01, 2016 12:51 PM<br><b>To:</b> WSBA Real Property Listserv <wsbarp@lists.wsbarppt.com><br><b>Subject:</b> [WSBARP] Bankruptcy & Abandoned Property<o:p></o:p></p></div></div><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>So I have a lender client wanting to do a deed in lieu on a property. Property was ‘surrendered’ by debtor in BK and ‘abandoned’ by Trustee. BK discharged. Lender (the first) is stating that they believe the 2<sup>nd</sup> was discharged. My thought is that such a position makes no sense since essentially neither the debtor nor the trustee even ‘dealt’ with this investment property and as a result neither did the Court and at most all the ‘discharge’ would have done is wipe out any personal liability for the debt <o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Sincerely,<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Richard L. Holland<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><img width=175 height=78 id="Picture_x0020_3" src="cid:image001.jpg@01D173BB.9851C7B0" alt=logo-for-print.jpg><o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><span style='font-size:10.0pt'>733 7th Avenue, Suite 110<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt'>Kirkland, WA 98033<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt'>425-836-6240 / 425-748-3901 (fax)<o:p></o:p></span></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><span style='font-size:9.0pt'>The information contained in this communication, and in any attached document(s), is priviledged and/or confidential, intended solely for the individual/entity to whom/which it was sent. If you are not the intended recipient, you are hereby notified that any dissemination, distribution, or copying of this information is strictly prohibited. If you have received this email in error, please notify me immediately at the email address, mailing address, or telephone or fax number above.<o:p></o:p></span></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>– but that’s more logic than some legal doctrine I can point to. I have very little familiarity with BK law but, again, from a RE perspective, it seems to me the Lender needs to FC and wipe out the second to get it off title. Am I missing something?<o:p></o:p></p></div></body></html>