LLC administratively dissolved in 1999 i secured the deed against the LLC and the general partner. can I reinstate the LLC and take ownership since it's dissolved? How do I foreclose? is the general partner liable? He defaulted from the beginning. This was a HUD insured elderly home apt complex if that matters.
Before I attempt to answer, 1999 was quite a while ago, and there may be certain statutes of limitation involved with your situation, so you need to see an attorney immediately to fully explore your situation and advise you of your options. I'm assuming that you loaned money to the LLC and that the Managing Member of the LLC personally guaranteed the note. There are two ways to foreclose in WA. First, there is the non-judicial foreclosure, this is the most common. When the lender forecloses this way, there are a series of notices that must be provided. It can be accomplished in 120 days. The other way to foreclose is to foreclose judicially, that is in court. There is a different set of rules. The big advantage for the lender is that with the judicial foreclosure, you can seek a deficiency judgment if the sale of the foreclosed property does not fully satisfy the outstanding obligations due. Seek out an attorney in Kirkland to review your situation. The attorney should have experience in private transaction foreclosures and litigation.
All answers to questions asked through Avvo and answered by attorney Richard J. Gregorek, the law firm of Gregorek and Associates, PLLC, and its employees is for informational purposes only and does not constitute legal advice and no attorney-client relationship is established. Before taking any legal action you should consult with a qualified attorney to review your situation and provide advice based on full knowledge of the facts and circumstances of your situation.
Assuming you were the lender, and the LLC was the Borrower, it does not matter that that the LLC has been administratively dissolved. If your deed of trust was property perfected, you have a lien on the property which remains regardless of who owns the property. The most common foreclosure process used in Washington is non-judicial foreclosure, which takes about 120 days to complete. If you used this process, the property would be sold to satisfy the debt, and you would either be paid from the proceeds, or would acquire the property if there were no third party bidders. The biggest downside to non-judicial foreclosure is that you cannot obtain any deficiency judgment against the borrower if the property is sold for less than the debt owed. If the property is worth substantially less than the debt, and if your borrower or guarantor has other assets which could satisfy a judgment, you could elect to pursue a judicial foreclosure which would allow you to recover a deficiency judgment against the borrower and/or guarantor. A judicial foreclosure typically takes more time and is more costly than a non-judicial foreclosure, though, and under a judicial foreclosure the borrower also has a statutory redemption period (usually 1 year) within which they can buy back the property.
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