If you’re facing foreclosure, the situation can feel overwhelming, and the fear of losing your home can add to the stress. But don’t panic just yet—there are steps you can take, and the sooner you act, the better your chances of finding a solution. This guide will walk you through your options, depending on how far along the foreclosure process is. Keep in mind, this information is specific to Washington State, so it’s always a good idea to consult with a housing counselor or attorney for more personalized advice. Plus, there are some free resources available, which we’ll share at the end.
Understanding the Stages of Foreclosure in Washington
Once you miss a mortgage payment or two, your bank will send a certified Notice of Pre-Foreclosure Options. This is your cue to contact a housing counselor. They’ll help you respond by sending a certified letter back to the lender requesting a Meet and Confer session. During this meeting, you can try to negotiate a loan modification or set up a new payment plan.
If you don’t respond to the first notice or can’t reach an agreement, the next step is a Notice of Default. This usually comes after at least 30 days, and at this point, you’ll need mediation. However, you can’t request it on your own—a housing counselor or attorney has to file the request for you. Mediation will pause the foreclosure process while you try to come to an agreement with the lender.
If negotiations still fall through, the lender will issue a Notice of Trustee’s Sale, which is made public. This is probably your last opportunity to resolve the issue. You’ll have a final 20 days to enter mediation. If the sale is scheduled and you still haven’t worked out a deal, you’ll have 120 days to move out before the home is sold. After the sale, you can remain in your home for an additional 20 days.
How Long Does It Take to Foreclose on a House in Washington State?
In Washington, the entire foreclosure process typically takes 6 to 9 months from the first missed payment to the foreclosure sale. The timeline can vary based on how quickly the lender moves forward and whether any steps are taken to delay or stop the process, like applying for mediation or negotiating a new payment plan.
What Is the Redemption Period for Foreclosures in Washington?
For most non-judicial foreclosures (which are the most common in Washington), there is no redemption period. That means once the home is sold at a foreclosure sale, the homeowner doesn’t get a chance to buy it back. However, in the case of judicial foreclosures, which involve court proceedings, there may be up to one year to redeem the property after the sale.
How Do Foreclosure Auctions Work in Washington?
In Washington, foreclosure auctions are public and typically run by a trustee. Here’s how they generally work:
- The property is auctioned to the highest bidder.
- Buyers are required to pay a deposit upfront, with the remaining balance due shortly after the auction.
- These sales are usually as-is, meaning the buyer assumes all risks, such as any unpaid liens or necessary repairs.
- If no bids are made, the property is transferred to the lender, who can then sell it through traditional methods.
What Type of Foreclosure Allows a Property to Be Sold?
In Washington, the most common foreclosure type is non-judicial foreclosure, which allows a lender to sell the property without involving the court system. After a Notice of Trustee’s Sale is issued, if the homeowner can’t stop the process, the property is sold at auction. There’s also judicial foreclosure, which goes through the courts and can also lead to the property being sold if the homeowner doesn’t catch up on missed payments.
What to Do If You’re Facing Foreclosure
It’s critical to act quickly if you’re facing foreclosure. Here are a few practical steps you can take:
- Contact Your Lender: Let them know your situation and keep detailed notes of your conversations.
- Stay in Your Home: Many assistance programs require that you still live in the property.
- Reach Out to a Housing Counselor: These professionals can help you figure out your next steps and possibly prevent the foreclosure from moving forward.
How to Stop Foreclosure
Here are several options you can explore to stop the foreclosure process:
- Make Up Missed Payments: If you’re able to pay what you owe, including late fees, this can halt the foreclosure process.
- Forbearance: You may qualify for forbearance, which allows you to pause or reduce your payments if your income has changed unexpectedly.
- Refinance: You could potentially refinance the loan to make it more manageable based on your current financial situation.
- Deed-in-Lieu of Foreclosure: This involves voluntarily transferring your property back to the lender to avoid foreclosure and minimize the impact on your credit.
- Sell the Home: If you can sell the house before the foreclosure sale, you may avoid the worst financial consequences and even walk away with some money.
Selling Your Home During Foreclosure
Selling your home can be a smart way to avoid foreclosure and protect your credit score. You might even come out ahead financially. However, it’s important to act quickly, as the sale needs to close before the foreclosure sale happens.
Home buyers can be an excellent option if you need a quick sale. These buyers often purchase homes as-is, without the need for inspections, showings, or repairs, and can close in just a few days. On the other hand, if you prefer selling your home through a more traditional method, make sure you start early. If the lender completes the foreclosure sale before your buyer closes, the sale is void.
You Have Options
If you’re in Washington State and dealing with foreclosure, Nine8 Redevelopment is here to help. We’re professional home buyers, ready to make a fair offer, close quickly, and even cover the cost of your move to a new home.
Resources to Help You
Here are some valuable resources that can assist you:
- Washington Homeownership Resource Center: Call (877) 894-4663 to connect with a free housing counselor.
- If you’ve received a Notice of Default, you might qualify for free mediation as long as you’ve lived in the home throughout the foreclosure process.
You can find more information on available options through the Foreclosure Fairness Program