A simple date mismatch in loan documents just cost a lender its foreclosure – reminding mortgage pros everywhere that paperwork precision is everything.
That’s the big takeaway from the October 21, 2025, decision by the Washington Court of Appeals in the case of Jerry and Judith Ross versus ARCPE 1, LLC. The case began in 2007, when the Rosses borrowed $350,000, secured by a promissory note and a deed of trust. The promissory note stated the loan would mature on January 31, 2017, while the deed of trust listed February 28, 2017, as the maturity date.
By 2023, the Rosses had not repaid the loan. ARCPE 1, LLC, which had acquired the loan from Morgan Stanley Credit Corporation, initiated nonjudicial foreclosure proceedings in February 2023. ARCPE argued that the February 28 date in the deed of trust controlled, making its foreclosure timely under Washington’s six-year statute of limitations for written contracts. The Rosses, however, contended that the statute of limitations began on January 31, 2017, the maturity date in the promissory note, making ARCPE’s foreclosure attempt eight days too late.