Posted by: Timothy Ellis (The Tim)

Tim Ellis is the founder of Seattle Bubble. His background in engineering and computer / internet technology, a fondness of data-based analysis of problems, and an addiction to spreadsheets all influence his perspective on the Seattle-area real estate market.

10 responses to “Weekly Twitter Digest (Link Roundup) for 2010-06-19”

  1. Themike

    Can someone explain the dinosaur comic to me? How do you pay back interest in the same medium as the thing borrowed?

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  2. Kary L. Krismer

    RE: Themike @ 1 – I’m not sure what you mean. The comic has a few problems in that you can rent something in the same medium. For example, I could allow you to rent my condo in Hawaii for a week in return for you allowing me to rent your condo in Cabo for a week.

    But beyond that the comic simply doesn’t understand the time value of money/discount rates, etc. Interest is not really rent, but just a realization that a dollar a year from now is not worth a dollar right now, even absent inflation concerns. Lottery winnings are a good example of that where the prize is technically $xx,xxx.xx over 20 years, so no interest in involved, but they will typically allow you to take a discounted lump sum.

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  3. CCG

    http://www.komonews.com/news/problemsolvers/96345774.html

    ‘Grenz and Lane are the co-owners of the Urban Tanning Spa and Puyallup. On Monday, a receptionist at the spa said neither had come to work.’

    If I owned Puyallup I wouldn’t bother going to work either.

    ‘According to a source, Lane actually filed paperwork last week to buy the multi-million-dollar home, but KOMO News has found paperwork that shows she filed for bankruptcy in February. Lane has also filed from divorce from her husband.

    Lane and Grenz aren’t married, but they were living with the children in a two-bedroom, two-bathroom apartment in Bothell before moving into the mansion a couple weeks ago. The only thing apparently left in the Bothell home is a stripper pole.

    Lane also runs a business called Northwest Notes Elimination, a debt recovery business, which prompts users to enter a password in order to access its website.

    But a Craiglist posting that advertises her business appears to mirror the legal maneuvers she’s using with the Kirkland mansion. In the ad, Lane writes, “Northwest Note Elimination is a mortgage audit process that perfects a claim on the home ridding it of mortgages. We make mortgages vanish completely. Sounds unbelievable, yes.”‘

    Wow, I guess my relation in title insurance has just been practicing the legal equivalent of necromancy for the last 40 years. What a kidder!

    ‘She claims she has spent 10 years in the commercial banking business.

    Kirkland police say they are waiting on a legal interpretation on what to do next.”

    Whatever she gets charged with, she should have no trouble pleading insanity.

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  4. Karl

    Got a question…looking at a forclosure property. a Judicial forclosure so there is a “right of redemption” clause. Not likely they will try to redeem but it will be hanging out there for another 10 months or so. 2nd problem is there is a “writ of attachment ” on the property for a civil lawsuit they lost. appears the bank forclosed after the “writ ” . does that liablity carry on ? did the bank forclose legally ? or should the state have auctioned it off to get the highest return ?

    just a burning question and our lawyer is not available until monday

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  5. Kary L. Krismer

    RE: Karl @ 4 – I’m not going to give you legal advice here (especially since it’s not even clear you’re talking about Washington state), but if the redemption period is only 10 months does that mean the sale has already occurred and you’re buying from the buyer? If so, you should be able to get a normal title insurance policy on your transaction (but one that would exclude the redemption rights). If you’re actually buying at the sale, you need to check if it’s even possible to get title insurance, and if not that would be another reason to get legal advice prior to proceeding (stated differently, you need to get legal advice, and this is another thing to ask about).

    On the writ, typically the result on items like that would depend on the timing relative to the recording date of the deed of trust being foreclosed, but there are exceptions to that. The one that first comes to mind is I once came across a property in foreclosure that was also going through a short sale process. The foreclosure got delayed even though there was no buyer, because the property was subject to a lis pendens because the house had been an illegal grow house. That would not go away on the foreclosure sale, but the Sheriff would have to agree to release for a short sale to go through.

    Finally–judicial foreclosure. Was this locally, and of a deed of trust on a residence? If so, how much was the assessed value of the house (or some indication of value).

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  6. Karl

    Yes, in Washington,

    The seller is the bank and they forclosed 2 months ago starting the redemption period. not sure if there was ever an auction and perhaps they never hit the reserve. At any rate it is on the retail market now. The asking price is 150k below the taxable value. The “writ” is the only thing to me that seems funny and should have been satisfied. The notice of sherriffs sale seems to be in order.

    We will talk to our Lawyer monday. Thanks for the input

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  7. Kary L. Krismer

    RE: Karl @ 6 – If you’re seeing the writ on a title report, often they include things that will just go away (be removed) when they issue a supplemented report. Although thinking about it further, perhaps that is something you (or the bank) will need an order in that court proceeding to remove. If you’re talking about a writ on personal property the Sheriff usually actually takes possession of the thing, so here the Sheriff may be still considered in possession of the real estate. Not something I’ve had to think about since law school.

    Is this over a $1,000,000 property? I’m trying to get a feel for why they judicially foreclosed–a topic discussed here in the past.

    BTW, if you’re already under contract you can be on a short time limit under the state-wide forms (which may not be used here since it’s REO). In any case, I’d talk to your attorney early Monday if you are under contract.

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  8. Karl

    The former owner is a long term guest of the state. 10 years minimum I am told. The property is listed at 250k , so modest value. With the right of redemption hanging out there it is a cash deal since no bank will touch it. In talking to others I think your right in that we would need to go to court and have the Writ removed at a later date. what might get sticky is the sale price since it has been discounted.

    The writ applies to several properties (one of which has had the title cleared) . total sum of the writ is 4.5 million

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  9. Kary L. Krismer

    RE: Karl @ 8 – I wonder why they didn’t waive the deficiency and get an 8 month redemption period? It doesn’t sound like they’re going to be garnishing wages in the near future!

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  10. Karl

    Yes, we have a lot of questions too. Appears that something is not right…

    What Lawyers are for ! Right?

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