Stop Foreclosure in Washington

 


How to Stop Foreclosure in Washington

In the state of Washington, they have both types of foreclosures mainly the judicial and non-judicial. If your lender wishes to follow the judicial process then they need to secure an order of sale for the loan balance. And they have to get it from a judge. If they opt for the non-judicial means, then this will allow the lender to sell the aforementioned property by using a power of sale to recover the loan balance. If you are up against either type, then these options can help you stop foreclosure.

  • Step 1
    Request from a relative or trusted family friend to buy the home. They can then rent the home to you and apply this amount to the mortgage. This is an effective way to prevent getting your house foreclosed.
  • Step 2
    Contact the lender at once so as to discusee loan modification options. Most of the lenders are willing to compromise with you so as to restructure yout loan with regards to the terms and payments. Calling the immediately will give the impression that you are determined to pay off the loan no matter what.
  • Step 3
    Refinance your property. This is perfect if your payments have increased due to the terms stated in your loan and yet your income is still the same. This way, you can get a secured fixed rate with a lower interest rate. Keep in mind that this will require extra money since you will need extra cash for processing fees and closing costs as well as reapprasing your home.
  • Step 4
    File for a Chapter 7 or 13 bankruptcy so as to keep your property. Bankruptcy will allow you to keep an exempt property such as your home.You can free up money since you will be able to start with a clean slate. However this should only be done as a last resort since this will remain in your credit report for up to ten years.

Synopsis of Washington Foreclosure Laws

Judicial Foreclosure Available: Yes

Non-Judicial Foreclosure Available: Yes

Primary Security Instruments: Deed of Trust, Mortgage

Timeline: Typically 120 days

Right of Redemption: Yes, but may be precluded

Deficiency Judgments Allowed: Yes

In Washington, lenders may foreclose on deeds of trusts or mortgages in default using either a judicial or non-judicial foreclosure process.

Judicial Foreclosure

The judicial process of foreclosure, which involves filing a lawsuit to obtain a court order to foreclose, is used when no power of sale is present in the mortgage or deed of trust. Generally, after the court declares a foreclosure, the property will be auctioned off to the highest bidder.

Non-Judicial Foreclosure

The non-judicial process of foreclosure is used when a power of sale clause exists in a mortgage or deed of trust. A “power of sale” clause is the clause in a deed of trust or mortgage, in which the borrower pre-authorizes the sale of property to pay off the balance on a loan in the event of the their default. In deeds of trust or mortgages where a power of sale exists, the power given to the lender to sell the property may be executed by the lender or their representative, typically referred to as the trustee. Regulations for this type of foreclosure process are outlined below in the “Power of Sale Foreclosure Guidelines”.

Power of Sale Foreclosure Guidelines

If the deed of trust or mortgage contains a power of sale clause and specifies the time, place and terms of sale, then the specified procedure must be followed. Otherwise, the non-judicial power of sale foreclosure is carried out as follows:

  1. The notice of sale must be transmitted both by regular mail and by certified mail, return receipt requested, to the borrower at their last known address, and by regular mail to the attorney of record for the borrower, if any, not less than thirty (30) days prior to the day of sale.The sheriff must publish a notice of the sale once a week, consecutively, for four (4) weeks, in any daily or weekly legal newspaper of of general circulation published in the county in which the property is located. Additionally, the sheriff must also post the notice in two public places, one of which must be the courthouse door, in the county where the sale is to take place for a period of not less than four weeks prior to the day of sale.

    Said notice must contain the time and place of the foreclosure sale, the names of the parties to the deed, the date of the deed, recording information, a property description, the terms of the sale, and the borrowers rights (or lack of) redemption.

  2. The borrower has up to eleven (11) days before the sale stop the foreclosure process by paying the past due payments, plus expenses, including trustee and attorney fees.
  3. The sale must be made by auction between 9:00 am in the morning and 4:00 am in the afternoon at the courthouse door on Friday unless Friday is a legal holiday and then the sale must be held on the next following regular business day. The sale may not be conducted less than 190 days from the date of default and the highest bidder will receive a certificate of sale.The sheriff may postpone the sale (not exceeding one (1) week next after the day appointed) by giving notice and by posting written notices of the adjournment under the notices of sale originally posted.

Unless redemption rights have been precluded, the borrower may, within eight (8) months after the date of the sale, redeem the property by paying the amount of the highest bid at the foreclosure, plus interest.

If the non-judicial foreclosure process is used by the lender, then it cannot sue for a deficiency judgment. On judicial foreclosure sales, the borrower can be sued for a deficiency, unless the property is found to be abandoned for six (6) months before the decree of foreclosure.

Where to go to for Foreclosure Help

Seattle Regional Office

Seattle Federal Office Building
909 First Avenue, Suite 200
Seattle, WA 98104-1000

Phone: (206) 220-5101
Toll-free: (877) 741-3281
Fax: (206) 220-5108
TTY: (206) 220-5254

Jurisdiction: Western and Central Washington

Office Hours: 8:00 a.m. to 5:00 p.m.,
Monday through Friday

Spokane Field Office

Thomas Foley U.S. Courthouse Building
920 West Riverside, Suite 588
Spokane, WA. 99201

Phone: (509) 368-3200
Fax: (509) 368-3209
TTY: (509) 368-3220

Jurisdiction: Eastern Washington

Bill Fattic
Field Office Director

Office Hours: 8:00 a.m. to 4:30 p.m.,
Monday through Friday

Stop Foreclosure Early

Spokane Mortgage
509-720-7077
24 W 3rd Ave
Spokane, WA

First Western Properties-Tacoma, Inc
253-472-0404
6402 Tacoma Mall Blvd
Tacoma, WA

Alki Mortgage
(206) 938-5626
7025 California Ave Sw
Seattle, WA

Windermere Real Estate Port Hadlock at the Real Estate Center
360 437-2278
9522 Oak Bay Road Suite 100
Port Ludlow, WA

Colliers International
253-926-6000
1201 Pacific Ave Ste 1502
Tacoma, WA

Quicken Loans
(866) 602-1549
1420 5th Ave
Seattle, WA

Coldwell Banker / Royal Realty
(509)-882-3515
100 W. Second
Grandview, WA

American Financial Solutions
206-989-5624
2815 2nd Avenue, Suite 280
Seattle, WA

Foss Waterway Development Authority
253-597-8122
535 E Dock St Ste 204
Tacoma, WA

CB Richard Ellis
(253) 572-6355
1145 Broadway Plaza Ste 1000
Tacoma, WA