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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'>Just my opinion, and I welcome any corrections:<o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal>Questions: 1). If a traditional deed-in-lieu of foreclosure is done and the judgment ‘vacated’, wouldn’t that mean that any junior lien holder essentially ‘re-appears’ on title?<o:p></o:p></p><p class=MsoListParagraph style='margin-left:1.75in;text-indent:-.25in;mso-list:l2 level1 lfo1'><![if !supportLists]><span style='color:#2E75B6;mso-style-textfill-fill-color:#2E75B6;mso-style-textfill-fill-alpha:100.0%'><span style='mso-list:Ignore'>a)<span style='font:7.0pt "Times New Roman"'> </span></span></span><![endif]><span style='color:#2E75B6;mso-style-textfill-fill-color:#2E75B6;mso-style-textfill-fill-alpha:100.0%'> You wouldn’t “vacate” the judgment, only satisfy the judgment.<o:p></o:p></span></p><p class=MsoListParagraph style='margin-left:1.75in;text-indent:-.25in;mso-list:l2 level1 lfo1'><![if !supportLists]><span style='mso-list:Ignore'>b)<span style='font:7.0pt "Times New Roman"'> </span></span><![endif]><span style='color:#2E75B6;mso-style-textfill-fill-color:#2E75B6;mso-style-textfill-fill-alpha:100.0%'>The junior lien holders remain until the sheriff’s deed is recorded. They re-attach upon a redemption by the debtor, and re-attach after the deed in lieu</span>. <o:p></o:p></p><p class=MsoNormal> 2). Can you exchange a deed from the debtor in ‘satisfaction’ of the judgment instead and avoid the undesirable result of #1? Again, remember that the debtor is willing to do this.<o:p></o:p></p><p class=MsoListParagraph style='margin-left:1.75in;text-indent:-.25in;mso-list:l0 level1 lfo3'><![if !supportLists]><span style='color:#2E75B6;mso-style-textfill-fill-color:#2E75B6;mso-style-textfill-fill-alpha:100.0%'><span style='mso-list:Ignore'>a)<span style='font:7.0pt "Times New Roman"'> </span></span></span><![endif]><span style='color:#2E75B6;mso-style-textfill-fill-color:#2E75B6;mso-style-textfill-fill-alpha:100.0%'>The deed should be given in satisfaction of the judgment (in lieu of foreclosure).<o:p></o:p></span></p><p class=MsoNormal> 3). Is it even proper to do any sort of DIL when there is a Judgment – so an order from the Court – that says ‘after foreclosure <i>and sale</i>’ or does the judgment need to be modified first?<o:p></o:p></p><p class=MsoListParagraph style='margin-left:1.75in;text-indent:-.25in;mso-list:l3 level1 lfo4'><![if !supportLists]><span style='color:#2E75B6;mso-style-textfill-fill-color:#2E75B6;mso-style-textfill-fill-alpha:100.0%'><span style='mso-list:Ignore'>a)<span style='font:7.0pt "Times New Roman"'> </span></span></span><![endif]><span style='color:#2E75B6;mso-style-textfill-fill-color:#2E75B6;mso-style-textfill-fill-alpha:100.0%'>The “foreclosure and sale” language does not forestall the parties from different resolutions of the matter. The judgment creditor could levy on other properties, for instance, or garnish wages should the creditor not want to take title to the subject property.<o:p></o:p></span></p><p class=MsoNormal><span style='color:#2E75B6;mso-style-textfill-fill-color:#2E75B6;mso-style-textfill-fill-alpha:100.0%'><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",serif;color:#1F497D'>John McCrady<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"HelveticaNeueETW01-55Rg",serif;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 28, 2017 1:34 PM<br><b>To:</b> WSBA Real Property Listserv <wsbarp@lists.wsbarppt.com><br><b>Subject:</b> [WSBARP] Judgment for Deed<o:p></o:p></p></div></div><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Ok, so this one can get you pretty far out in the weeds if you think about too long, as I have been, so I am hoping for some insight.<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Situation: Bank sues debtor and gets a judgment for balance owed etc. and that includes the order to judicially foreclose.<o:p></o:p></p><p class=MsoNormal style='margin-left:1.0in'>Bank wants to do a deed-in-lieu, presumably to avoid the 8 month redemption period, delays in getting to sale and getting the deed from the Sheriff after redemption and so on. I have to assume the debtor is willing to cooperate. Total guess but it seems likely it is a cash for keys or we won’t destroy your credit sort of thing (again just guessing).<o:p></o:p></p><p class=MsoNormal> Title says, to them, the judgment already extinguished the DOT and other items on record below it. I mean the title right now is squeaky clean (except for the judgment).<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Questions: 1). If a traditional deed-in-lieu of foreclosure is done and the judgment ‘vacated’, wouldn’t that mean that any junior lien holder essentially ‘re-appears’ on title?<o:p></o:p></p><p class=MsoNormal> 2). Can you exchange a deed from the debtor in ‘satisfaction’ of the judgment instead and avoid the undesirable result of #1? Again, remember that the debtor is willing to do this.<o:p></o:p></p><p class=MsoNormal> 3). Is it even proper to do any sort of DIL when there is a Judgment – so an order from the Court – that says ‘after foreclosure <i>and sale</i>’ or does the judgment need to be modified first?<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@01D2A7CB.1C67F3A0" 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'>603 4th Avenue, Suite 100 <b><span style='color:red'>PLEASE NOTE OUR NEW ADDRESS!</span></b><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'>877.785.8734 / 866.982.5080 (fax)<o:p></o:p></span></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><span style='font-size:9.0pt'>BE AWARE! Online banking fraud is on the rise. If you receive an email containing a change in WIRE TRANSFER INSTRUCTIONS call our office immediately to verify the information prior to sending funds. ** WE DO NOT CHANGE OUR WIRE INSTRUCTIONS**<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:9.0pt'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:9.0pt'>The information contained in this communication, and in any attached document(s), is privileged 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></div></body></html>