Property that is subject to being acquired by eminent domain is often encumbered by one or more loans. Lenders are required to be joined as parties in condemnation actions under Washington law. The lender has the right to obtain counsel and participate in the case along with the property owner and any other parties who have an interest in the property. Condemnation cases have three phases: (1) adjudication of public use and necessity, (2) determination of just compensation to be awarded to the owner, and (3) payment of just compensation and transfer of title.

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