In Jacksons v. Quality Loan Service Corporation of Washington, No. 72-16-3-1 (April 6, 2015), the Washington Court of Appeals (Division 1) affirmed the dismissal of a plaintiff’s claims against various entities connected with a planned nonjudicial foreclosure sale of her house.   In so ruling, the court confirmed a number of procedures that together streamline mortgage foreclosure litigation:  (1) documents referenced in debtor’s complaint or available from the county record’s office are properly considered in a motion to dismiss, (2)  nonjudicial foreclosures are not claims, and (3) a declaration by the holder of the note satisfies Deed of Trust Act (DTA) proof requirements for nonjudicial foreclosure.

First, the court ruled that the trial court properly took judicial notice of the note, addendum, and an allonge because they were referenced in the complaint.  The assignment of the deed of trust and recorded appointment of a successor trustee were subject to judicial notice because they were public records easily accessible through the King County Recorder’s Office.  Slip op. at 5-6.
Continue Reading Washington Court of Appeals Streamlines Foreclosure Process

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. 
Continue Reading State Supreme Court Curtails Post-Foreclosure Sale Invalidation, but Permits Other Relief

Steven Schroeder formerly owned a 200-acre ranch in Stevens County. When he defaulted on the loan, Excelsior Mortgage filed an action to judicially foreclose its deed of trust and, eventually, negotiated to foreclose nonjudicially. The nonjudicial foreclosure process culminated in a trustee’s sale at which Excelsior purchased the property. Following the purchase, Schroeder did not