Lenders May Foreclose a Deed of Trust Without Accelerating the Underlying Debt

Debt Acceleration Generally Commercial and residential loan documents typically give the lender the option of accelerating the debt following an event of default.  In other words, if the borrower fails to pay, or if some other event of default occurs, and that default continues uncured for a specified amount of time, then the lender may declare the entire loan balance … Continue reading »

Court of Appeals Clarifies Timing Requirements for Creditor’s Claim Lawsuits

The Washington State Court of Appeals, Division 1, recently clarified the time limit for a creditor of an estate to file a lawsuit against a personal representative who has rejected the creditor’s claim. In re Estate of Stover, involved an alleged creditor who filed a claim against the estate on September 16, 2011. The personal representative did not respond to … Continue reading »

The Washington Deed of Trust Act May Bar a Deficiency Judgment Against a Commercial Guarantor

The Division II Court of Appeals recently decided that the Washington Deeds of Trust Act prohibited a lender from obtaining a deficiency judgment against a commercial guarantor where the guaranty was secured by nonjudicially foreclosed deeds of trust. First-Citizens Bank & Trust Co. v. Cornerstone Homes & Development, LLC, __ Wn. App. __, 314 P.3d 420 (2013). The holding has broad implications for both commercial lenders … Continue reading »

State Court of Appeals Confirms "Mailbox Rule" for Probate Notice to Creditors

A recent Washington State Court of Appeals (Division I) case holds that the time during which the creditor of a probate estate can bring a claim begins to run from the mailing of the Notice to Creditors, even if the creditor alleges that it never received such notice. Washington Federal Savings v. Klein concerns a loan made by Washington Federal … Continue reading »

Sellers Have Rights to Development Work After Buyer Default

Sellers of undeveloped land selling to buyers who plan on developing the land often want the buyer’s development work if the buyer does not follow through with the deal.  In Mangat v. Snohomish County, No. 67712-8, (Div. 1, Aug. 26, 2013), a Washington Court of Appeals recently decided that sellers in this situation may proceed with the development application originally filed … Continue reading »

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