Washington State Foreclosure Prevention Efforts

For 2009, Washington ranked 24th among all states in foreclosure rate, an increase of 35.34% from the year before. Nationally, 2009 was the worse year for foreclosures in US history, with 2.8 million property owners receiving a foreclosure notice.

Pierce County where the city of Tacoma is located, has experienced the highest local rate of foreclosures.

Washington foreclosures are both judicial and non-judicial. A court appearance is only necessary when there is no power of sale clause in the loan paperwork. Most foreclosures are non-judicial. The foreclosure sale may not take place less than 190 days from the date of default. In a non-judicial process a lender can’t sue for a deficiency. In a judicial foreclosure, the lender can’t sue if the property has been abandoned for six months prior to the court’s issuance of a foreclosure.

This is the usual process:

• A Notice of Sale must be sent by regular mail to the borrower’s attorney 30 days before the sale date with a certified letter to the borrower at his last known address conveying the same information.
• The notice must be published for four weeks in a row in a newspaper of general circulation along with two postings in a public place, one being the door of the courthouse in the county where the sale will take place.
• Foreclosure sales are held as auctions between 9:00 AM and 4:00 PM on a Friday unless it’s a legal holiday. They may be postponed for up to a week by notifying all parties and posting new notices.

HB 2791 took effect on June 12, 2008, to help protect distressed homeowners from foreclosure rescue scam artists and those who are robbing homeowners of their equity. Violators can be sued for up to three times actual damages. Here’s more on the law.

If you’re a senior citizen or disabled and are facing foreclosure  because of unpaid property taxes or special assessments, you might be able to remain in your home under two state programs. Contact your county assessor’s office or an attorney for help.

Residents who can’t afford an attorney for foreclosure help should contact the Home Foreclosure Legal Aid Project.

The State of Washington is advising residents who are having trouble paying their monthly mortgage payment to contact a U.S. Department of Housing and Urban Development (HUD) approved counselor right away. Call: 1-877-894-HOME or 1-877-894- 4663. Click here for the list.

Washington encourages its residents to avail themselves of the Obama Making Home Affordable Program for either a refinance or loan modification.

In all cases the state urges distressed homeowners to do the following:

• Act now since delaying won’t help.
• Educate yourself about foreclosure. Here’s a list of resources recommended by the Washington State Department of Financial Institutions.
• Contact the lender proactively. Open all mail and return all phone calls being sure to keep detailed notes about to whom and when you spoke as well as what was discussed.
• Avoid the quick fix, making sure that if you hire a consultant you get all promises in writing.
• Up front fees are a red flag. Don’t fall for any rescue scams.
• Make sure you understand everything you sign.
• Stay in your home so that you still qualify for assistance.
• Be sure to use certified mail, return receipt requested for all mail correspondence.

Washington also holds regularly scheduled foreclosure prevention workshops. Click here and scroll down to find the next one in your area. If you plan to attend one of the workshops, be sure to bring the following items:

• Photo ID
• Social security number
• Last two years of W-2s and tax returns
• Most recent two pay stubs
• Last two bank statements
• Monthly mortgage statements or notices
• Layoff notice from employer if applicable
• Medical letter from doctor if relevant

The state offers this free brochure from the Washington State Department of Financial Institutions.

For more information go to homeownership.wa.gov or call 1-877-894-HOME (4663).

If you are unable to reach your servicer or local state program, or if you would like additional assistance in this process contact Mortgage Outreach at 1-866-408-0420. Mortgage Outreach works directly with many servicers to help find solutions for borrowers that are struggling to keep up with their payments.