Peculiar situation in Washington State

[SerendipitouSmiles]

A little back story first. In 2013 my husband and I bought a 5 acre parcel of land in a very country subdivision that had very few developed properties on owner finance contract using a local title company. The property came with CC&R's. The payments were affordable enough. Fast forward to a few years later. We were having a hard time paying rent AND a mortgage and we thought we had found some loopholes in the CC&R's so we decided to homestead it. One of the more affluent neighbors didn't appreciate this and persuaded enough of the property owners to sue us. We weren't able to afford an attorney and ended up being railroaded in court representing ourselves by the president of the bar. The guy who financed us said he would do some kind of property trade as he owned other properties but then backed out of his oral agreement. We ended up defaulting on the mortgage. The guy who financed us said we should do a quiet deed and avoid the foreclosure on our credit. We agreed to do that but here is where the really peculiar thing comes in and I'm not really sure where it leaves us legally. The guy got really flaky and never showed up to the meeting. The property is still in our name. We haven't made a mortgage payment for almost 4 years and haven't heard from the guy who financed us in 2. Anyone have any idea where that leaves us legally in Washington State?

 

[Zigner]

A little back story first. In 2013 my husband and I bought a 5 acre parcel of land in a very country subdivision that had very few developed properties on owner finance contract using a local title company. The property came with CC&R's. The payments were affordable enough. Fast forward to a few years later. We were having a hard time paying rent AND a mortgage and we thought we had found some loopholes in the CC&R's so we decided to homestead it. One of the more affluent neighbors didn't appreciate this and persuaded enough of the property owners to sue us. We weren't able to afford an attorney and ended up being railroaded in court representing ourselves by the president of the bar. The guy who financed us said he would do some kind of property trade as he owned other properties but then backed out of his oral agreement. We ended up defaulting on the mortgage. The guy who financed us said we should do a quiet deed and avoid the foreclosure on our credit. We agreed to do that but here is where the really peculiar thing comes in and I'm not really sure where it leaves us legally. The guy got really flaky and never showed up to the meeting. The property is still in our name. We haven't made a mortgage payment for almost 4 years and haven't heard from the guy who financed us in 2. Anyone have any idea where that leaves us legally in Washington State?

This leaves you at the point of talking to an attorney the specializes in real estate matters. Your matter is beyond that for which an internet forum can help. I wish you the best of luck in resolving your issue.

 

[bcr229]

Have the property taxes been paid on it all this time?

 

[SerendipitouSmiles]

Have the property taxes been paid on it all this time?

No. I have considered whether to pay them up or let them go and let the county auction it.

 

[bcr229]

No. I have considered whether to pay them up or let them go and let the county auction it.

IANAL but I don't think that's a good idea, as I believe it would take the option of quit claiming it back to the prior owner in lieu of foreclosure off the table.

 

[SerendipitouSmiles]

IANAL but I don't think that's a good idea, as I believe it would take the option of quit claiming it back to the prior owner in lieu of foreclosure off the table.

I see what you're saying. We never really considered that I don't think. Just because it gets auctioned doesn't mean we don't still own the debt of the mortgage. By allowing it to go to auction we would no longer have the option of a quit deed should the prior owner ever surface again. He would just sue us for the money owed regardless of whether we still held the deed to the property. Thanks for pointing that out!