<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=utf-8">
<meta name="Generator" content="Microsoft Word 15 (filtered medium)">
<style><!--
/* Font Definitions */
@font-face
{font-family:Wingdings;
panose-1:5 0 0 0 0 0 0 0 0 0;}
@font-face
{font-family:"Cambria Math";
panose-1:2 4 5 3 5 4 6 3 2 4;}
@font-face
{font-family:Calibri;
panose-1:2 15 5 2 2 2 4 3 2 4;}
@font-face
{font-family:Verdana;
panose-1:2 11 6 4 3 5 4 4 2 4;}
@font-face
{font-family:"Segoe UI";
panose-1:2 11 5 2 4 2 4 2 2 3;}
/* Style Definitions */
p.MsoNormal, li.MsoNormal, div.MsoNormal
{margin:0in;
font-size:11.0pt;
font-family:"Calibri",sans-serif;}
span.EmailStyle20
{mso-style-type:personal-reply;
font-family:"Verdana",sans-serif;
color:windowtext;
font-weight:normal;
font-style:normal;}
.MsoChpDefault
{mso-style-type:export-only;
font-size:10.0pt;}
@page WordSection1
{size:8.5in 11.0in;
margin:1.0in 1.0in 1.0in 1.0in;}
div.WordSection1
{page:WordSection1;}
/* List Definitions */
@list l0
{mso-list-id:2013100655;
mso-list-type:hybrid;
mso-list-template-ids:2120878034 67698689 67698691 67698693 67698689 67698691 67698693 67698689 67698691 67698693;}
@list l0:level1
{mso-level-number-format:bullet;
mso-level-text:;
mso-level-tab-stop:none;
mso-level-number-position:left;
text-indent:-.25in;
font-family:Symbol;}
@list l0:level2
{mso-level-number-format:bullet;
mso-level-text:o;
mso-level-tab-stop:none;
mso-level-number-position:left;
text-indent:-.25in;
font-family:"Courier New";}
@list l0:level3
{mso-level-number-format:bullet;
mso-level-text:;
mso-level-tab-stop:none;
mso-level-number-position:left;
text-indent:-.25in;
font-family:Wingdings;}
@list l0:level4
{mso-level-number-format:bullet;
mso-level-text:;
mso-level-tab-stop:none;
mso-level-number-position:left;
text-indent:-.25in;
font-family:Symbol;}
@list l0:level5
{mso-level-number-format:bullet;
mso-level-text:o;
mso-level-tab-stop:none;
mso-level-number-position:left;
text-indent:-.25in;
font-family:"Courier New";}
@list l0:level6
{mso-level-number-format:bullet;
mso-level-text:;
mso-level-tab-stop:none;
mso-level-number-position:left;
text-indent:-.25in;
font-family:Wingdings;}
@list l0:level7
{mso-level-number-format:bullet;
mso-level-text:;
mso-level-tab-stop:none;
mso-level-number-position:left;
text-indent:-.25in;
font-family:Symbol;}
@list l0:level8
{mso-level-number-format:bullet;
mso-level-text:o;
mso-level-tab-stop:none;
mso-level-number-position:left;
text-indent:-.25in;
font-family:"Courier New";}
@list l0:level9
{mso-level-number-format:bullet;
mso-level-text:;
mso-level-tab-stop:none;
mso-level-number-position:left;
text-indent:-.25in;
font-family:Wingdings;}
ol
{margin-bottom:0in;}
ul
{margin-bottom:0in;}
--></style><!--[if gte mso 9]><xml>
<o:shapedefaults v:ext="edit" spidmax="1026" />
</xml><![endif]--><!--[if gte mso 9]><xml>
<o:shapelayout v:ext="edit">
<o:idmap v:ext="edit" data="1" />
</o:shapelayout></xml><![endif]-->
</head>
<body lang="EN-US" link="blue" vlink="purple" style="word-wrap:break-word">
<div class="WordSection1">
<p class="MsoNormal"><span style="font-family:"Verdana",sans-serif">I am encouraged to read about the homestead amendments. Why? Because
<i>In re Wilson</i> was my case and I am still bitter about that perceived injustice.
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Verdana",sans-serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Verdana",sans-serif">There were five pre-bankruptcy judgments. No objection in bankruptcy to homestead. The owners refinanced the mortgage that was before the judgments. The title company insured the new lender
without exceptions for the pre-bankruptcy judgments based upon the lawyer for the owners who told the title officer the judgment liens were removed based upon bankruptcy and homestead law. [That was not the practice of the title companies at that time.] But
now I had to defend the lender against execution. I argued there should be no right to execute after the bankruptcy where the value of the property at the time of the bankruptcy did not exceed the homestead amount. Unfortunately, the appellate court disagreed
on reconsideration. <o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Verdana",sans-serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Verdana",sans-serif">The opinion agreed that the homestead exemption protected the entire value of the property at the time of the bankruptcy, but allowed later execution against the property after the bankruptcy
based upon the inflation after the bankruptcy. The essence of that decision was that the lien of the judgments was preserved since each was recorded and the duration of those five judgment liens was not affected by the bankruptcy discharge. I won that case
before I lost it.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Verdana",sans-serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Verdana",sans-serif">For those who wonder why the bankruptcy could not be reopened to seek an Order under 522(f) removing the liens, the owners did seek that permission to reopen the bankruptcy but the bankruptcy
court denied the request. Another unfortunate part was that the court did not allow the new mortgage to claim the priority of the prior mortgage that it paid based upon equitable subrogation. Of course the title company paid the judgments and protected its
lender insured and the property owners kept the house.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Verdana",sans-serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Verdana",sans-serif">I am optimistic that the new homestead amendments should solve that recurring problem.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Verdana",sans-serif"><o:p> </o:p></span></p>
<p class="MsoNormal" style="background:white;vertical-align:baseline"><span style="font-family:"Verdana",sans-serif;color:#002060">Dwight A. Bickel<o:p></o:p></span></p>
<p class="MsoNormal" style="background:white;vertical-align:baseline"><span style="font-family:"Verdana",sans-serif;color:#002060">Real Property Title Advisor<o:p></o:p></span></p>
<p class="MsoNormal" style="background:white;vertical-align:baseline"><span style="font-family:"Verdana",sans-serif;color:#002060">Washington Title Professional<o:p></o:p></span></p>
<p class="MsoNormal" style="background:white;vertical-align:baseline"><span style="font-family:"Verdana",sans-serif;color:#002060;border:none windowtext 1.0pt;padding:0in"><a href="mailto:Dwight@DwightBickel.com"><span style="color:#002060">Dwight@DwightBickel.com</span></a></span><span style="font-family:"Verdana",sans-serif;color:#002060"><o:p></o:p></span></p>
<p class="MsoNormal" style="background:white;vertical-align:baseline"><span style="font-family:"Verdana",sans-serif;color:#002060">https:/dwightbickel.com<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Verdana",sans-serif"><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>To:</b> WSBA Real Property Listserv <wsbarp@lists.wsbarppt.com><br>
<br>
<o:p></o:p></p>
</div>
</div>
<p class="MsoNormal">Here is what has passed on LLT and Homesteads (these summaries were not written by me)<o:p></o:p></p>
<p class="MsoNormal" style="margin-left:.25in;mso-add-space:auto;text-align:justify;line-height:105%">
<span style="font-size:11.5pt;line-height:105%"><o:p> </o:p></span></p>
<p class="MsoNormal" style="margin-left:.25in;mso-add-space:auto;text-align:justify;text-indent:-.25in;line-height:105%;mso-list:l0 level1 lfo2">
<![if !supportLists]><span style="font-size:11.5pt;line-height:105%;font-family:Symbol"><span style="mso-list:Ignore">·<span style="font:7.0pt "Times New Roman"">
</span></span></span><![endif]><b><u><span style="font-size:11.5pt;line-height:105%">ESSB 5408</span></u></b><u><span style="font-size:11.5pt;line-height:105%"> (Sen. Stanford) – Homestead exemption
</span></u><b><span style="font-size:11.5pt;line-height:105%">Status: </span></b><span style="font-size:11.5pt;line-height:105%">ESSB 5408 passed both the Senate and House with broad bipartisan support. It is on the Governor’s desk.<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left:.25in;mso-add-space:auto;text-align:justify;line-height:105%">
<span style="font-size:11.5pt;line-height:105%">ESSB 5408 increases the homestead exemption to either $125,000 or the county median sale price of a single-family home in the preceding calendar year—whichever is greater—and allows appreciation of the property
to be included in the exemption after a bankruptcy filing, even if it exceeds the statutory limit. In a bankruptcy case, the debtor’s exemption shall be determined on the date the bankruptcy petition is filed. If the value of the debtor’s interest in homestead
property on the petition date is less than or equal to the amount that can be exempted under the homestead law, then the debtor’s entire interest in the property, including the debtor’s right to possession and interests of no monetary value, is exempt. Any
appreciation in the value of the debtor’s exempt interest in the property during the bankruptcy case is also exempt. This language is to address the case of
<i>Wilson v. Rigby (In re Wilson)</i>, 909 F.3d 306 (9th Cir. 2018).<o:p></o:p></span></p>
<div>
<p class="MsoNormal"><o:p> </o:p></p>
</div>
</div>
</body>
</html>