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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='font-size:14.0pt;font-family:"Times New Roman","serif"'>We do deeds in lieu that specifically say, non-merger, and that the grantee retains all other rights it has in the property, including as security for the debt in rem. I hope that makes sense. This is in the HOA assessment lien foreclosure context.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:14.0pt;font-family:"Times New Roman","serif"'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:14.0pt;font-family:"Times New Roman","serif"'>Rob <o:p></o:p></span></p><p class=MsoNormal><span style='font-size:14.0pt;font-family:"Times New Roman","serif"'><o:p> </o:p></span></p><div><p class=MsoNormal style='text-autospace:none'><span style='font-size:14.0pt;font-family:"Times New Roman","serif"'>Robert D. Wilson-Hoss <br>Hoss & Wilson-Hoss, LLP <br>236 West Birch Street <br>Shelton, WA 98584 <br>360 426-2999<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:14.0pt;font-family:"Times New Roman","serif"'><a href="www.hossandwilsonhoss.com"><span style='color:blue'>www.hossandwilson-hoss.com</span></a><br><a href="mailto:rob@hctc.com"><span style='color:blue'>rob@hctc.com</span></a></span><o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal style='text-autospace:none'><i><span style='font-family:"Times New Roman","serif"'>This message is intended solely for the use of the addressee and may contain information that is privileged, confidential, and exempt from disclosure under applicable law. If you are not the addressee, you are hereby notified that any use, distribution, or copying of this message is strictly prohibited. If you received this message in error, please notify us by reply e-mail or by telephone (call us collect at the number listed above) and immediately delete this message and any and all of its attachments. Thank you.<o:p></o:p></span></i></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Times New Roman","serif";text-transform:uppercase'>This office does debt collection and this e-mail may be an attempt to collect a debt, Any information obtained will be used for that purpose. </span></b><span style='font-size:10.0pt;font-family:"Times New Roman","serif"'>To the extent the Federal Fair Debt Collection Practices Act (15 U.S.C. § 1692) applies this firm is acting as a debt collector for the condominium/homeowners' association named above to collect a debt owed to it. Any information obtained will be used for collection purposes. You have the right to seek advice of legal counsel.</span><o:p></o:p></p></div><p class=MsoNormal><span style='font-size:14.0pt;font-family:"Times New Roman","serif"'><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>Bickel, Dwight<br><b>Sent:</b> Tuesday, March 28, 2017 2:15 PM<br><b>To:</b> WSBA Real Property Listserv<br><b>Subject:</b> Re: [WSBARP] Judgment for Deed<o:p></o:p></span></p></div></div><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><span style='color:#1F497D'>It is not true that the entry of the “</span>judgment already extinguished the DOT and other items on record below it<span style='color:#1F497D'>”<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'>The entry of the Decree of Foreclosure, and the Judgment determining the amount owed, do not affect junior liens at that point in time. The junior liens and rights of successors are not extinguished until a judicial sale, followed by redemption rights, leading to a Sheriff’s Deed. At that point, the rights of junior lienholders and successors to the borrower are terminated in favor of the holder of the Sheriff’s Certificate of Purchase leading to the Sheriff’s Deed conveying to that purchaser.<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 would be most helpful to distinguish the deed is not given in satisfaction of the indebtedness. Lenders should preserve the right to collect indebtedness against the land. If the lender agrees to extinguish the debt, then it cannot foreclose against junior liens or successors. In this scenario, the value to the owner received in exchange for title is probably the lender’s agreement not to pursue collection against the borrower, but without altering the the lender’s rights to pursue collection against the land using either the mortgage or the judgment. A DIL in this instance would be given as part of an agreement that the lender will accept the transfer of the land, in its encumbered present condition, and the lender will agree not to pursue the judgment debtor for any payment in addition to the transfer of title. <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'>The lender could also agree not to proceed with the foreclosure [or execution of the judgment.] Sometimes the value of the land is sufficient for the lender even though those junior liens are also entitled to payment at the time of resale.<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'>That will not affect the rights, or the lien priorities, of any junior lien or successor in ownership. The lender should preserve its mortgage and probably should proceed with the Decree of Foreclosure if the lender needs to extinguish junior liens or interests. </span><span style='font-size:9.0pt'><o:p></o:p></span></p><p class=MsoNormal><o:p> </o:p></p><div class=MsoNormal align=center style='text-align:center'><span style='font-size:12.0pt;font-family:"Times New Roman","serif"'><hr size=1 width="100%" noshade style='color:black' align=center></span></div><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman","serif"'>NOTICE: The information contained in this message is proprietary and/or confidential and may be privileged. If you are not the intended recipient of this communication, you are hereby notified to: (i) delete the message and all copies; (ii) do not disclose, distribute or use the message in any manner; and (iii) notify the sender immediately. <o:p></o:p></span></p></div></body></html>