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<p class="MsoNormal"><span style="color:#1F497D">He’s probably personally obligated to continue paying per the terms of the agreement.
<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">Under certain circumstances, the law will prevent enforcement of a deficiency by the foreclosing lender. See RCW 61.24.100<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>From:</b> wsbarp-bounces@lists.wsbarppt.com [mailto:wsbarp-bounces@lists.wsbarppt.com]
<b>On Behalf Of </b>Timothy Lehr<br>
<b>Sent:</b> Tuesday, November 26, 2019 2:25 PM<br>
<b>To:</b> wsbarp@lists.wsbarppt.com<br>
<b>Subject:</b> [WSBARP] Deed of trust and foreclosure<o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Real Estate attorneys,<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">PC owned real property with a mortgage and deed of trust securing the debt. PC subsequently took out a line of credit on the real property, signed a Bank Equity Maximizer Agreement (line of credit agreement), and equity lender secured debt
with deed of trust on same property (inferior to first mortgage). <o:p></o:p></p>
<p class="MsoNormal">PC then defaults on first mortgage and property is eventually foreclosed and sold at trustee’s sale. Bank buys the property at the trustee’s sale then sells it to third party. Both deeds of trust are wiped out, but PC still has this Equity
Agreement and has been paying on it.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">PCs question is whether he is still required to pay on the line of credit. It has not yet been paid off. The agreement and deed of trust seem to be silent on this point. My assumption is the lender could still enforce the agreement that
was signed even though the security instrument has been removed from the property. I also assume this situation comes up pretty regularly, but it’s my first time looking into it. Any thoughts are appreciated.
<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Tim<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><b>Timothy C. Lehr<o:p></o:p></b></p>
<p class="MsoNormal">Attorney at Law<o:p></o:p></p>
<p class="MsoNormal">Stiles Law Inc., P.S.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">p: 360.855.0131<o:p></o:p></p>
<p class="MsoNormal">e: <a href="mailto:timothy@stileslaw.com">timothy@stileslaw.com</a><o:p></o:p></p>
<p class="MsoNormal">w: <a href="http://www.stileslaw.com">www.stileslaw.com</a><o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
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