Washington State Supreme Court reverses Division II in part and holds that failure to meet conditions to terminate a foreclosure sale and further appeal the trial court’s ruling constitutes a waiver of the right to challenge the foreclosure sale, but not other post-sale relief in Frizzell v. Murray, No. 87927-3.

Background and Analysis

Despite her relatively low income of $1600 a month, and despite a learning disability and dementia, Tamara Frizzell obtained from lenders a $100,000 loan secured by the $250,000 home she inherited from her late husband.  She had initially sought a $20,000 loan to pay bills, but the lenders, Barbara and Gregory Murray, convinced Frizzell that she could get a better interest rate on a $100,000 loan.  The Murrays explained that they would only loan money for business purposes, so Frizzell’s live-in friend convinced her that the two of them could launch a wheelchair and scooter business with the 40-50 wheelchairs and scooters he had stored on Frizzell’s property.  Without any business background, business plan, or any other indicia that a wheelchair/scooter business would work, Frizzell received the $100,000 loan, minus $12,000 that the Murrays retained for fees. 
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