Washington state is one of only three states in the nation to have a “Foreclosure Fairness Act.”
This law allows Washington homeowners who are facing foreclosure, the opportunity to have a mediation session with their lender to review options available for them to stay in their homes. Those options would be a loan modification, or a short sale.
The homeowner must be an owner occupant, and an attorney or approved counselor must refer you to the foreclosure mediation. The counseling will be free of charge (not the attorney)
If mediation is requested, the lender an not continue with the foreclosure action until the mediation is completed, this can provide the homeowner with up to four months of extended time to short sell their home.
The act provides two distinct opportunities to meet the lender. The first is known as a meet and greet and it must be requested within 30 days of receipt of the notice from the lender. This meeting must take place within 90 days of the lenders notice, and be in the county the home is in, and will delay any notice of default which is usually the beginning of the foreclosure process. The second step is a mediation, in which the lender, the homeowner, and the mediator try to resolve the issues around the homeowners inability to make timely mortgage payments. The mediation will delay the issuance of the notice of trustee sale.
Most homeowners (80%) will not qualify for loan modification. But this whole process will give the homeowner and extra four months to complete a short sale of their home. And the lucky 20% that do qualify will be able to get a loan modification.
If you have any questions or would like more information give me a call at 360-739-6981