Trial court erred in not considering borrowers’ laches defense based on four-year delay in seeking deficiency claim after foreclosure of first and second mortgages, discussing prejudice element of laches.
Court Decisions
Borrower can proceed with claims under TILA (periodic statements), breach of covenant of good faith and fair dealing, and state UDAP law where servicers provided no communications on second mortgage for fourteen years.
Borrower stated prima facie Washington UDAP claim with allegations that servicer included demands for payment of time-barred installments in notice of intent to foreclose second mortgage.
Denying motion to dismiss claims that servicer’s failure to pursue payments on the second mortgage for thirteen years constituted a negligent undertaking of servicing under state law, also violation of TILA periodic statement rules.
Granting summary judgment to borrowers, discharging mortgage debt on grounds of abandonment due to delays in enforcement of mortgage after default; proceedings involved first mortgage.