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 six-year statute of limitations.
The trial court and Court of Appeals initially ruled in Luv's favor, granting him quiet title. However, the Supreme Court's decision
opens the door for lenders and servicers to revisit foreclosure judgments that were previously considered final, particularly in cases where state courts have disagreed on foreclosure laws after bankruptcy.
Author's summary: Court ruling may reopen foreclosure judgments.