A recent Mortgage Professional America (MPA) report highlights a Washington Supreme Court decision that could have major implications for mortgage servicers. The ruling in Luv v. West Coast Servicing, Inc. opens the door for lenders and servicers to revisit foreclosure judgments that were previously considered final—especially in cases where state courts have disagreed on how foreclosure laws apply after bankruptcy.
What Happened
The case started with homeowner Prince Eric Luv, who filed for bankruptcy in 2008 and received a discharge in 2009. Nearly a decade later, West Coast Servicing, which had since acquired his loan, initiated a nonjudicial foreclosure. Luv pushed back, arguing that Washington’s six-year statute of limitations had already run out. Both the trial court and the Court of Appeals agreed and granted Luv quiet title.
But things got complicated when another appellate case, Copper Creek (Marysville) Homeowners Ass’n v. Kurtz, reached a conflicting conclusion. That inconsistency set up the legal question the Supreme Court just decided: Can a final foreclosure judgment be reopened when the law itself is unsettled?
The Court’s Decision
The Washington Supreme Court said yes—under certain circumstances. The justices ruled that when there’s a genuine conflict in appellate decisions, trial courts may reopen final judgments under Civil Rule 60(b)(11), which allows relief for “any other reason justifying relief.”
In plain terms, that means servicers now have a potential pathway to challenge prior rulings if the law was unclear or contradictory when those decisions were made.
Why It Matters
This decision doesn’t change foreclosure law itself, but it does create new procedural flexibility. For servicers and lenders, it’s a reminder that:
- “Final” isn’t always final. Judgments may be revisited when the legal landscape shifts.
- Staying current is key. Conflicting appellate opinions can directly affect enforcement rights.
- Procedural strategy matters. Knowing when and how to seek relief under CR 60(b)(11) could protect long-term interests.
