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<p>One of those two cases and statutory amendment is likely what I
was referring to in my response, assuming the statute was amended
in response to the one of those cases. But without reading the
cases, the mortgage creditor was not allowed to redeem due to the
specific language of the statute (referring to time rather than
priority as I recall), and that quirk has since been fixed to
avoid a similar result in the future.</p>
<p>Unfortunately Sheppards (if that still exists) doesn't pick up
situations where the legislature overrules a case, which is why I
brought it up. ;-)<br>
</p>
<pre class="moz-signature" cols="72">Kary L. Krismer
206 723-2148</pre>
<div class="moz-cite-prefix">On 1/20/2023 12:05 PM, Patrick McDonald
wrote:<br>
</div>
<blockquote type="cite"
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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>
<div>
<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>
</div>
<p class="MsoNormal"><o:p> </o:p></p>
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<div style="border:none;border-top:solid #E1E1E1
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<p class="MsoNormal"><b>From:</b>
<a class="moz-txt-link-abbreviated" href="mailto:wsbarp-bounces@lists.wsbarppt.com">wsbarp-bounces@lists.wsbarppt.com</a>
<a class="moz-txt-link-rfc2396E" href="mailto:wsbarp-bounces@lists.wsbarppt.com"><wsbarp-bounces@lists.wsbarppt.com></a>
<b>On Behalf Of </b>Kary Krismer<br>
<b>Sent:</b> January 20, 2023 11:02 AM<br>
<b>To:</b> <a class="moz-txt-link-abbreviated" href="mailto:wsbarp@lists.wsbarppt.com">wsbarp@lists.wsbarppt.com</a><br>
<b>Subject:</b> Re: [WSBARP] Interest in Property<o:p></o:p></p>
</div>
</div>
<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>
<div>
<p class="MsoNormal">On 1/20/2023 9:36 AM, Joseph McIntosh
wrote:<o:p></o:p></p>
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