Washington Supreme Court Ruling Could Reopen Foreclosure Judgments After Bankruptcy
The Washington Supreme Court's decision in Luv v. West Coast Servicing provides a new legal pathway for mortgage servicers to revisit previously finalized foreclosure cases.
A recent report by Mortgage Professional America (MPA) highlights the implications of this decision, which could allow lenders and servicers to revisit foreclosure judgments that were previously considered final.
The case began with homeowner Prince Eric Luv, who 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, arguing that the six-year statute of limitations had already expired.
Initially, both the trial court and the Court of Appeals agreed with Luv and granted him quiet title.
The court's decision opens the door for lenders and servicers to revisit foreclosure judgments that were previously considered final.
Author's summary: Court ruling may reopen foreclosure cases.