Washington Supreme Court Ruling Impact on Foreclosure Judgments
A recent decision by the Washington Supreme Court in Luv v. West Coast Servicing may allow mortgage servicers to revisit previously finalized foreclosure cases.
The case began when homeowner Prince Eric Luv filed for bankruptcy in 2008 and received a discharge in 2009. Nearly a decade later, West Coast Servicing initiated a nonjudicial foreclosure, which Luv contested, citing the six-year statute of limitations.
Initially, both the trial court and the Court of Appeals ruled in Luv's favor, granting him quiet title. However, the Washington Supreme Court's decision now provides a new legal pathway for lenders and servicers to revisit such foreclosure judgments.
The court's decision opens the door for lenders and servicers to revisit foreclosure judgments that were previously considered final.
- The case highlights the implications for mortgage servicers when state courts disagree on how foreclosure laws apply after bankruptcy.
- The ruling may lead to the reopening of previously finalized foreclosure cases.
Author's summary: Washington Supreme Court ruling may reopen foreclosure judgments.