Legal Question in Real Estate Law in Washington

Re: Property in Washington State

Let me first premise this response by saying that it will likley be incomplete for your purposes, but will at least put you in the right direction or give you some direction. Ultimately, I suggest that you contact an attorney to review all the documents and then proceed based upon that advice.

From what you wrote, if I understand it, you owned the property outright, then sold it to the current owner with a promissory note secured by a deed of trust, with you as the beneficiary. Now, since he's neither paid you the promised payments, and since he has failed to pay property taxes, the county has imposed a tax lien and now seeks to foreclose to recoup what is owed to them, and since you are a first position lienholder, they notified you of the sale as well.

Think of yourself as the bank foreclosing on a mortgage. You have a couple of choices here. Do nothing, and the property will be sold at auction, with the proceeds going to pay off the county and you and any other lienholders, to the extent that enough will be raised to pay you all off. Alternatively, appear at the auction or send a representative in your place, and bid on the property yourself. I generally prefer this way of doing things, since you will at most be out the back taxes owed. You should bid until the back taxes and your deed of trust are accounted for- anyone who bids higher will cover those amounts, and the difference will go to the current owner or you, depending on how your promissory note is set up.

Hopefully, your promissory note allows for recovery of attorney's fees and damages in the event of foreclosure. Ultimately, I doubt you'll collect any of this, except if the property goes for more than the liens owed on it.

Again, your best bet here is to hire an attorney. At least spend a little money now to know exactly what your rights are under your promissory note and the law as it applies to your case. From there, you can decide whether you need further legal assistance, or if you can proceed on your own.

In that vein, I am happy to help- you can click on our e-mail address below to request a consultation. Either way- best of luck to you.