SBA Loan vs Tax Deed in Washinton State

[Frank Gutierrez]

Hello!  I am thinking of investing in some Tax Deed Sale properties in King County, WA.  One of the properties has a 2006 SBA Mortgage on it.  Does anyone know if the SBA Mortage will survive the sale? 

From the title report:

A deed of trust to secure an indebtedness in the amount shown below,
Amount: $193,900.00
Dated: October 21, 2006
Trustor/Grantor: XXX
Trustee: U.S. Small Business Administration
Beneficiary: The Administrator of the U.S. Small Business Administration
Loan No.: DHL XXX
Recording Date: November 27, 2006
Recording No.: XXX

Any thoughts would be greatly appreciated.

[Davido Davido]

Highly unlikely that a SBA mortgage would survive property tax foreclosure.  But, WA has a six year Statute of Limitations.  So the SBA mortgage will be unenforceable against the current owner or the winning bidder at the tax foreclosure sale -unless a payment has been made within the last six years (after 2013).  

https://app.leg.wa.gov/RCW/default.aspx?cite=7.28.300
https://apps.leg.wa.gov/RCW/default.aspx?cite=4.16&full=true#4.16.040