Under Washington law, you get the right to reinstate the loan at any time prior to the 11th day before the sale. Sometimes, a foreclosure sale doesn't bring in enough money to pay off the full amount owed on the loan. The difference between the sale price and the total debt is called a "deficiency balance.
But deficiency judgments aren't allowed following nonjudicial foreclosures in Washington. Some states have a law that gives a foreclosed homeowner time after the foreclosure sale to redeem the property. In Washington, however, foreclosed homeowners don't get a redemption period after a nonjuducial foreclosure. In Washington, the purchaser is entitled to possession of the home on the 20th day after the foreclosure sale.
If you don't leave, the purchaser may file a lawsuit to evict you from the home. The purchaser has a right to summary proceedings to get possession of the property. Foreclosure laws are complicated. Servicers and lenders sometimes make errors or forget steps. If you think your servicer or lender failed to complete a required step, made a mistake, or violated state or federal foreclosure laws, you might have a defense that could force a restart to the foreclosure, or you might have leverage to work out an alternative.
Consider talking to a local foreclosure attorney or legal aid office immediately to learn about your rights. A lawyer can also tell you about different ways to avoid foreclosure. Likewise, a HUD-approved housing counselor can provide helpful information at no cost about various alternatives to foreclosure. The information provided on this site is not legal advice, does not constitute a lawyer referral service, and no attorney-client or confidential relationship is or will be formed by use of the site.
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Call us at 1 The Foreclosure Process and Laws in Washington. Learn how foreclosures in Washington work. Mortgage Loans in Washington If you get a loan to buy a home in Washington, you'll likely sign two documents: a promissory note and a deed of trust. What Happens if You Miss a Mortgage Payment in Washington If you miss a payment, the servicer can usually charge a late fee after the grace period expires. What Is a Breach Letter? The lender must file a court action in Superior Court in the county where your home is located.
The lender must let you know about the lawsuit by serving you with a Summons and Complaint. The lawsuit asks the court to order the sheriff to sell your home at public auction sheriff's sale to pay the judgment against you. You might be able to claim your home as a homestead under Washington law RCW 6. Then you may be able to live in your home for at least eight months after the sheriff's sale.
Anytime during the foreclosure action and up until eight months after the sheriff's sale, you can sell your home and pay off the mortgage debt. You may be able to pay off your mortgage debt and keep any extra profit for yourself. Even if you do not live in your home after the sheriff's sale, you may be able to buy it back "redeem" it from whoever bought it at the sheriff's sale up until eight to twelve months after the sale. Then you may owe the lender for the difference. Do not wait until the foreclosure action starts!
Contact the lender or seller as soon as you think you might fall behind. Tell them:. If you can start making payments again, you can ask the lender to "recast" the loan. This means spreading the payments you missed over the rest of the loan. Your monthly payment will go up a little.
The lender might let you make partial payments on the back amount , on top of your monthly payments, until you catch up. If your payments are too high, you may be able to "refinance" the loan. You can shop among banks and try to get a new loan with lower payments. You get the original loan canceled and a new one to pay off what you owe. This will probably cost you more in the end. Even then, banks may not approve you for a new loan. You may deed the home back to the lender or seller.
You lose your home but avoid the costs of a foreclosure action. You may be able to sell the home yourself before the foreclosure sale and save some equity if the home is worth more than you owe. If it sells for more than you owe, you keep the extra. If you decide to sell, have a real estate agent list it. Tell your bank you are trying to sell the home.
You may be able to file for chapter 13 bankruptcy and present a plan for catching up on your mortgage. Visit WashingtonLawHelp. You also have up to eight to twelve months to sell your home after the sheriff's sale in court-involved cases only. RCW 6. You may qualify for a federal program that changes loan terms to make it easier and more affordable to pay. Visit www. If you are on active military duty , talk to your JAG attorney or an attorney who specializes in military law.
You may have other legal rights. The video above was created by Seattle University Law School and and details the foreclosure timeline in an easy to understand manner which I will go into more detail below. Foreclosure defense attorneys or bankruptcy attorneys who deal with mortgage issues all the time often offer free consultations as do housing counselors who can further advise you on the foreclosure timeline.
Housing counselors may provide you with options for which you may have to seek an attorneys assistance eventually. Either way you go, you should talk to somebody about your situation so your are well informed. At this stage you can request a loan modification, deed in liue of foreclosure give the house back in exchange for loan forgiveness , or ask to speak with somebody at the bank about your options.
The notice of default will repeat a lot of the information that was included in the notice of pre-foreclosure options. After you receive this notice you will also be eligible to apply for the Washington State Foreclosure Fairness Mediation program where a housing counselor or an attorney must submit your referral to the program. Your bank cannot foreclose on your home while you are participating in the mediation program and this program can be used as a tool to buy you time while you contemplate your next moves.
The mediation program allows you to meet with an attorney from your bank and somebody who has decision making of authority on your loan from the bank is usually present on the phone.
Your attorney if you have one and mediator will also be present at the meeting.
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