If a borrower falls behind in his monthly house payments, the seller or lender may try to take his house back. This is generally called foreclosure. If a house is foreclosed, the borrower may los not only his house, but may also all of the money he has invested in it.
What are some ways that you can prevent foreclosure?
– The borrower can stop the foreclosure by curing the default – in another words, ,make up any delinquent payments plus costs related to the trustee’s sale. The borrower can do this at any time until 11 days before the trustee’s sale. If the borrower is able to make up the payments, he will also have to pay the lender’s expenses related to starting the foreclosure process.
– After the 11th days, the lender is under no obligation to accept a cure of the defaults.
– Upon cure of the default, the trustee is required to execute, acknowledge and record a notice of discontinuance of the trustee’s sale.
Contact the lender and find out about alternative payment options
Evaluate refinancing options
File for bankruptcy
Sell the home
Helpful web sites on foreclosure and referral
A foreclosure is very serious. Not only is a home in jeopardy, but also one’s credit rating. The borrower should contact a lawyer immediately if he is served with any court papers or notices. The sooner the borrower seeks assistance, the sooner a lawyer can try to deal with the problem. The borrower should not wait until it’s too late! If the borrower cannot afford a lawyer, you can try to refer to the local legal services office or county bar association.
425-417-3424 provide “ride – along” service. Homebuyers and relators can ride along with Todd to a foreclosure auction while Todd takes you through his ‘investor checklist’.
Washington State Foreclosure Timeline and Process
Non-judicial sale 10 am every Friday at county court house
If non-judicial foreclosure is selected by the lender, then it cannot sue for a deficiency judgment. On judicial foreclosure sales, the borrower can be sued for deficiency, unless the property is found to be abandoned for six months before the decree of foreclosure.
|Action||Timeframe prior to the date of sale|
|Default Occurs||At least 190 days|
|Notice of Default Posted||At least 120 days. Registered mail and posted on the property (this is not a recorded document in WA state)|
|Notice of Trustees Sales Notice of Foreclosure||At least 90 days Recorded|
|First Publication Notice of Trustee Sales||Between 35th and 28th days|
|Notify IRS if Tax Lien has been filed since the Notice of Default||At least 25 days|
|Second publication: Notice of Trustees Sale||Between 14th and 7th day|
|Last day reinstate||10 days|
|Purchaser’s right to possesion||20 days after the sale|