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notice of discontinuance of with prejudice filed day before the trustee sale, WTF!!??

Discussion in 'Foreclosure Laws' started by rkmommy, May 23, 2013.

  1. rkmommy

    rkmommy LoanSafe Member

    Trustees sale scheduled, went to courthouse to observe and turns out no one showed for any of the properties and the processor didnt have any documentation for my home in his pile. Went home dazed and confused. After inquiring several times to trustee firm a response was given telling me the sale had been cancelled with a notice filed record. Thats all they told me. Went to the county auditors web page and discovered that by searching their records by the auditor's file no. (listed on the documents received from the trustee in several different places) low and behold was digital records of all recorded documents, since my deed of trust filed 20 years ago, including a notice of discontinuance filed and recorded the day before the trustee sale. Notarized document states that it has been filed in accordance with WA State RCW 61.24 "et. seq"

    "This discontinuance shall not be construed as waiving any breach or default under the
    aforementioned deed of trust,or as impairing any right or remedy thereunder or as
    modifying or altering in any respect any of the terms, covenants, conditions or

    Notice of Discontinuanco ef Trustee'S sale-2 3397833 N
    05/16/201311:44:28AM Page 2 of3

    obligations thereof, but is shall be deemed to be only an election, without prejudice not to
    cause the sale to be made ursuantto the aforementioned Notice of Trustee's Sale.
    DATED: May ,2013"

    so does anybody know what this means? The statute reads as if it only happens if a party to the deed has some how cleared the delinquency but as far as I know that isnt the case. They dont want this property (the bank) no buyers are likely. Is this the motive for the reprieve that I dont even really want? I am ready to start a fresh so it is almost like a nightmare - chains that bind me. Any ideas or insight greatly welcome. Is this a new trend? or just in the depressed area I live?
  2. LoanModHelpCenter.com

    LoanModHelpCenter.com Michael Nazarinia Loan Workout Expert 877-747-2969

    rkmommy - i have seen this happen when the servicer or third party doing the foreclosure sale is not in compliance with rules and/or laws and they catch it internally.

    This is good news for you, it puts off the sale and it is probably because they may possibly be liable for damages if they went through with the sale and you decided to fight back.

    they contract out foreclosure processing to third parties and they routinely make mistakes and other times intentionally take shortcuts that don't turn out to be legal (see robo-signing misrepresentation debacle).
  3. rkmommy

    rkmommy LoanSafe Member

    What type of error could they have made that would cause them to think they might be liable for damages? I am somewhat familiar with the robo-signing but my foreclosure was initiated quite a while after that all hit the fan. And you saying the trustee which is a law firm specializing in foreclosures and other debt solutions for creditors may have contracted out the processing? The person present at the court house referred to himself as a processor and the law firm was indeed a client of theirs but I assumed that his role was simply to process the mechanics of the actual sale at the court house. How would I find out who has done what with the process of foreclosure without a suite requiring discovery? They wont tell me anything as it is let alone any details of about their contractors.

    My original post said "with prejudice" but the document says "without prejudice" I think I understand what this means but can anyone clarify the legality of this term. The document as written implies that they reserve the right to continue the foreclosure process but the section in the statute that speaks to discontinuance doesnt seem to address this. INstead it seems to speak to stopping the sale for reasons like a party to the deed with a lien objects or the delinquency is somehow cleared. I didnt read every section of the RcW yet though. And another question regarding legal terms: what des "et. seq." stand for?

    Seeings as I am a party to the action how come they didn't provide me with copies of the notice to discontinue sale prior to filing? And how can I determine their motives since I have to live within the time constraints allowed? I assume that the timeline is stayed with the discontinuance? How will I Know if the sale is one again if they dont have to give me notice? what mechanism re-initiates the sale? Any ideas or info would be greatly appreciated. One more question for now - if it is delayed indefinitely could I attempt a short sale now with the servicer's permission??

    Thank you for time and as everyone else states, thank you so much for this venue and the time and effort those with knowledge and experience put into their continued responses. We are grateful. We truly are.
  4. LoanModHelpCenter.com

    LoanModHelpCenter.com Michael Nazarinia Loan Workout Expert 877-747-2969

    rkmommy -

    What type of error could they have made that would cause them to think they might be liable for damages? - any kind of error that is material in nature such as other liens, validity of the lien and the holder of the lien for example.

    you saying the trustee which is a law firm specializing in foreclosures and other debt solutions for creditors may have contracted out the processing? -perhaps, its not unusual to contract out foreclosure work to smaller or larger firms, depending on the unique case.

    How would I find out who has done what with the process of foreclosure without a suite requiring discovery? - you can write a written qualified request to all parties involved inquiring about what you think was done and with specific questions, but you need to know what to ask so you seek professional advice depending on your unique case.

    My original post said "with prejudice" but the document says "without prejudice" I think I understand what this means but can anyone clarify the legality of this term. - this means that they can re-file anytime they are not prejudiced or "biased."

    And another question regarding legal terms: what des "et. seq." stand for? -et seq is short for et sequentia or et sequenteus (plural) means "in the following" in latin, you can look it up in any legal dictionary.

    Seeings as I am a party to the action how come they didn't provide me with copies of the notice to discontinue sale prior to filing - they are not perfect far from it, they may have made a mistake, and perhaps you really are not the party to the action and you just think you are but they don't.

    And how can I determine their motives since I have to live within the time constraints allowed? -i wish i could plug in questions like this into some sort of google search engine of the mind but alas, not yet. seek professional legal advice, i can post some references or email me and your state and county if you can'f find a good attorney referral.

    I assume that the timeline is stayed with the discontinuance? - that is good assumption based on your post.

    How will I Know if the sale is one again if they dont have to give me notice? -you will have to check the website or the telephone for them with your sale number.

    what mechanism re-initiates the sale? - a human being making a decision that they have processed the foreclosure correctly.

    if it is delayed indefinitely could I attempt a short sale now with the servicer's permission?? -yes you can attempt a short sale or a loan modification, just send me the 14 inputs see if I can help you.

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