- August 08, 1990
- All Washington Offices
- Lien Foreclosures
The Washington Court of Appeals has ruled that a foreclosure of a mechanic's lien is invalid unless all lienholders of record are joined in the foreclosure. Queen Anne Parking v. Olney & Associates, 788 P.2d 580 (Wash. App. 1990).
In this case a suit for foreclosure of a mechanic's lien was filed. The plaintiff failed to serve a lien claimant and deed of trust beneficiary within 90 days of filing. Both the lien claimant and beneficiary had priority over the plaintiff's claim of lien and would not have been affected by the suit.
Nevertheless the court of appeals threw out the foreclosure for failure to comply with the lien statutes. The eight month foreclosure period had now expired and another suit was not possible.
This means that if you miss any recorded interests in a litigation guarantee for a lien foreclosure, the foreclosure will be invalid. It will not be possible to correct the problem and we will have a claim on the guarantee for the amount of the lien. So be careful.
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