Washington Supreme Court Ruling Impacts 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 involves homeowner Prince Eric Luv, who filed for bankruptcy in 2008 and received a discharge in 2009. In 2018, West Coast Servicing initiated a nonjudicial foreclosure, which Luv contested, citing the state's 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 Supreme Court's decision has opened the door for lenders and servicers to revisit foreclosure judgments that were previously considered final.
The court’s decision gives mortgage servicers a new legal pathway to revisit previously finalized foreclosure cases when the law was unsettled.
This ruling could have significant implications for mortgage servicers, particularly in cases where state courts have disagreed on how foreclosure laws apply after bankruptcy.
Author's summary: Court ruling may reopen foreclosure judgments.