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<p class="MsoNormal">Many community association liens (e.g., condominium associations governed under RCW 64.34) are senior to mortgages/deeds of trust, but their priority is limited to a certain dollar amount. If a lender doesn’t satisfy the association’s lien
priority prior to the association conducting a sheriff’s sale, the lender’s mortgage/deed of trust is eliminated. However, the lender would be a valid redemptioner. The redemption statute was specifically amended in 2013 or so to make sure lenders could redeem
following a sheriff’s sale. See <i>Summerhill Village Homeowners Association v. Roughley</i> and
<i>BAC Home Loans Servicing LP v. Fulbright</i> for more detailed analysis. <o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">In my experience, condominium associations used to eliminate lenders’ deeds of trusts from properties somewhat regularly simply because lenders were incapable of timey responding after being served with process (probably due in part to
the MERS system). But about 10 years ago lenders started getting much better at responding to lawsuits and paying off the associations’ lien priority to protect their deeds of trust.
<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Patrick McDonald<o:p></o:p></p>
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<p class="MsoNormal"><b>_______________________<o:p></o:p></b></p>
<p class="MsoNormal"><b>Pody & McDonald, PLLC<o:p></o:p></b></p>
<p class="MsoNormal">1000 Second Avenue, Ste. 1605<o:p></o:p></p>
<p class="MsoNormal">Seattle, WA 98104<o:p></o:p></p>
<p class="MsoNormal">T: 206-467-1559<o:p></o:p></p>
<p class="MsoNormal">F: 206-467-4489<o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal"><b>From:</b> wsbarp-bounces@lists.wsbarppt.com <wsbarp-bounces@lists.wsbarppt.com>
<b>On Behalf Of </b>Kary Krismer<br>
<b>Sent:</b> January 20, 2023 11:02 AM<br>
<b>To:</b> wsbarp@lists.wsbarppt.com<br>
<b>Subject:</b> Re: [WSBARP] Interest in Property<o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p>There is a case from about 8-10 years ago where the HOA's foreclosure wiped out the mortgage debt, but that was due to an unintended quirk in the statutory language, such language having since been corrected.<o:p></o:p></p>
<pre>Kary L. Krismer<o:p></o:p></pre>
<pre>206 723-2148<o:p></o:p></pre>
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<p class="MsoNormal">On 1/20/2023 9:36 AM, Joseph McIntosh wrote:<o:p></o:p></p>
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<p class="MsoNormal"><span style="color:#1F497D">Yes, because PC’s interest acquired at HOA sale was encumbered w/ the mortgage. PC stepped into the shoes of the homeowner. PC did not acquire any greater interest. A mortgage foreclosure may result in a
redemption right, however. </span><o:p></o:p></p>
<p class="MsoNormal"><span style="color:#1F497D"> </span><o:p></o:p></p>
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<p class="MsoNormal"><b>From:</b> <a href="mailto:wsbarp-bounces@lists.wsbarppt.com">
wsbarp-bounces@lists.wsbarppt.com</a> <a href="mailto:wsbarp-bounces@lists.wsbarppt.com">
<wsbarp-bounces@lists.wsbarppt.com></a> <b>On Behalf Of </b>Jimmy Garg<br>
<b>Sent:</b> Friday, January 20, 2023 9:06 AM<br>
<b>To:</b> WSBA Real Property Listserv <a href="mailto:wsbarp@lists.wsbarppt.com">
<wsbarp@lists.wsbarppt.com></a><br>
<b>Subject:</b> [WSBARP] Interest in Property<o:p></o:p></p>
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<p class="MsoNormal"> <o:p></o:p></p>
<p class="MsoNormal">Listmates:<o:p></o:p></p>
<p class="MsoNormal"> <o:p></o:p></p>
<p class="MsoNormal">Does anyone have any experience with this question:<o:p></o:p></p>
<p class="MsoNormal"> <o:p></o:p></p>
<p class="MsoNormal">PC purchased debtor/homeowner’s interest at a Sheriff’s sale last year after the property was foreclosed on by the HOA for failure to pay HOA dues/late fees/interest. Subsequent to that the first mortgage foreclosed on the property and
sold the property to another party at a separate foreclosure sale. Is PC’s interest in property wiped by the subsequent foreclosure by the primary mortgage?<o:p></o:p></p>
<p class="MsoNormal"> <o:p></o:p></p>
<p class="MsoNormal">Jimmy Garg, Esq.<o:p></o:p></p>
<p class="MsoNormal">Jimmy Garg, PLLC<o:p></o:p></p>
<p class="MsoNormal">300 Lenora Street # 1063<br>
Seattle, WA 98121 <o:p></o:p></p>
<p class="MsoNormal">206-580-3790 (p) 206-736-3218 (f)<o:p></o:p></p>
<p class="MsoNormal" style="background:white"><b><span style="font-size:9.0pt">Notice:</span></b><span style="font-size:9.0pt"> Unless you have previously signed an engagement agreement with this firm, and the firm has accepted you as a client, then NO exchange
of information by virtue of e-mails or other communications will create an attorney-client relationship, including a duty of confidentiality, between sender and/or recipient.</span><o:p></o:p></p>
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<p class="MsoNormal" style="background:white"><span style="font-size:9.0pt;font-family:"Segoe UI ,sans-serif;color:red",serif">Please note that due to COVID-19, this office is not currently accepting in person appointments.</span><o:p></o:p></p>
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<pre>***Disclaimer: Please note that RPPT listserv participation is not restricted to practicing attorneys and may include non-practicing attorneys, law students, professionals working in related fields, and others.***<o:p></o:p></pre>
<pre><o:p> </o:p></pre>
<pre>_______________________________________________<o:p></o:p></pre>
<pre>WSBARP mailing list<o:p></o:p></pre>
<pre><a href="mailto:WSBARP@lists.wsbarppt.com">WSBARP@lists.wsbarppt.com</a><o:p></o:p></pre>
<pre><a href="http://mailman.fsr.com/mailman/listinfo/wsbarp">http://mailman.fsr.com/mailman/listinfo/wsbarp</a><o:p></o:p></pre>
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