Washington State enacted the Distressed Property Conveyance Act several years ago as a means of providing consumer protection to home owners from unscrupulous real estate investors who engaged in equity skimming. Though the law has, in our opinion, far-reaching and some seemingly unattainable attributes, it is in fact law that we all have to abide by.

The Washington State Supreme Court issued a new opinion on February 06, 2014. This opinion stems from litigation related to the Distressed Property Conveyance Act. 

The opinion acknowledges the statutory provision of RCW 61.34 that includes properties that are either (1) "in danger of foreclosure or at risk of loss due to nonpayment of taxes" or (2) "in danger of foreclosure or...in the process of being foreclosed to a default under the terms of a mortgage." 

The Distressed Property Conveyance Act is not a new law; this Washington State Supreme Court case is an opinion on existing law. The court's opinion serves as a good reminder to remain diligent in avoiding preforeclosures. As is common when investors work with home owners to buy distressed residential properties, the investor loses.