Find Your Way Through a Home Foreclosure in Yakima, Washington

If you are a homeowner, you know how devastating a home foreclosure can be, especially because it also comes hand-in-hand with financial hardship and emotional distress. For Yakima, Washington residents, the foreclosure process involves a mix of federal and state laws that are all designed to help both lenders and borrowers.

Our Yakima bankruptcy attorneys are here to guide you through the foreclosure procedures, legal remedies, and preventative strategies there are to help you navigate the complexity of a home foreclosure.

A home foreclosure is the legal process through which a lender attempts to recover the loan balance from someone who has defaulted on the mortgage payments. This typically results in the forced sale of the property.

In Yakima, Washington, there are two main home foreclosure types you want to familiarize yourself with:

• Judicial Foreclosure: This involves court proceedings, where the lender files a lawsuit against you to obtain a foreclosure order.
• Non-Judicial Foreclosure: This is the more common foreclosure type in Washington. It is often conducted outside of the Yakima County court system and is instead under the terms of a power of sale clause in the mortgage or deed trust.

Here is what to expect if you are facing home foreclosure in Washington:

The process begins when you miss one or more payments. The lender will issue a notice of default (NOD), which informs you of your delinquency and allows you to catch up on those missed payments.

After receiving the NOD, you typically have 30 days to resolve the default. During this time, you can also consider loan modifications or repayment plans.

If you don’t cure the default, the lender will file a notice of trustee sale. This gives you at least 120 days' notice before the auction takes place.

The property is auctioned to the highest bidder, often the lender. When this happens, you must vacate the property unless a redemption period applies.

If the property sells for less than the mortgage amount, the lender may pursue a deficiency judgment against you for the remainder unless prohibited by law.

This federal regulation is part of the Real Estate Settlement Procedures Act (RESPA) and outlines the responsibilities of mortgage servicers when a borrower is delinquent on their mortgage.

Under this rule:

• Borrowers must be given at least 120 days to address a delinquency before foreclosure proceedings can begin.
• Mortgage servicers are prohibited from engaging in dual tracking, which is the simultaneous pursuit of foreclosure and loan modification.

The FDCPA limits harassment by debt collectors during the foreclosure process.

The FFA offers mediation services to help you and your lenders reach an agreement. It also applies to owner-occupied residential properties.

Trustees must adhere to strict guidelines for notifications and timelines.

Under RCW 6.13.030, the Washington Homestead Exemption Act, there are vital protections listed that allow you to exempt a portion of your home equity from creditors. It protects up to $125,000 of your equity in most cases and applies to your primary residence, making it much more difficult for creditors to force the property sale.

Are you facing an unexpected financial hardship, dealing with missing mortgage payments, or struggling to keep up with your monthly costs? Well, it’s important to remember that you have options.

First and foremost, open lines of communication can prevent foreclosure. Options include loan modification, forbearance agreements, and repayment plans.

If you find you have sufficient equity in your home, you may qualify for refinancing to reduce monthly payments.

HUD-approved housing counselors provide free or low-cost advice. It is a good idea to use as many resources as possible to avoid a home foreclosure.

Filing for Chapter 7 or Chapter 13 bankruptcy can delay or stop the foreclosure. Filing for Chapter 7 bankruptcy may temporarily stop the foreclosure proceedings but can still lead to the eventual loss of the home. A Chapter 13 bankruptcy, on the other hand, allows you to catch up on those missed payments via an approved repayment plan.

Let’s break bankruptcy and foreclosure down a bit more so it’s easier to understand.

• Eliminates unsecured debt, freeing resources so you can start to address mortgage payments
• Doesn’t prevent foreclosure if your payments remain delinquent

• Implements a court-approved repayment plan
• Provides the opportunity to cure defaults over 3-5 years

Both bankruptcy chapters impose an automatic stay that temporarily stops foreclosure proceedings. It also prevents lenders from proceeding with foreclosure auctions or evictions, giving you time to reorganize your finances or negotiate with your lenders. This provision is particularly useful if you want to save your property or gain additional time to explore alternatives.

Understanding these federal and state statutes helps empower you to navigate your possible foreclosure with more confidence and clarity. Whether you are exploring loan modification options, considering bankruptcy for some relief, or seeking to understand your rights under the Deed of Trust Act, all of these laws serve as a solid foundation of protection.

By consulting a qualified legal professional in Yakima County, you can develop effective strategies that address foreclosure and protect your financial future.

Missing a few payments doesn’t automatically lead to a foreclosure. So, if you act right away and communicate with your lender, they may be willing to work with you. Remember, you have options like loan modification, forbearance, or a repayment plan to help you catch up on missed payments and avoid foreclosure.

A loan modification is simply a change to the original terms of your mortgage, like reducing the interest rate, extending the repayment term, or even forgiving a portion of the loan. This option can lower your monthly payments and make them more manageable while helping you avoid foreclosure.

Yes, selling your home is an option to prevent foreclosure. If your home’s sale price is greater than the amount you owe on the mortgage, you can use the proceeds from the sale to pay off the loan and avoid foreclosure. However, if the sale price doesn’t cover the mortgage, you may need to negotiate with the lender for a short sale or other solution.

A short sale happens when the lender agrees to let you sell the home for less than the mortgage balance owed. While this can help you avoid foreclosure, it requires the lender’s approval, and you may still be liable for the remaining balance of the loan after the sale.

If you’re unemployed or experiencing financial difficulties, you can explore options like forbearance. A forbearance is when your lender temporarily suspends or reduces your payments. It may even be a repayment plan to catch up on missed payments. In some cases, you might find you qualify for government assistance programs, like the Home Affordable Modification Program (HAMP), which can help reduce your mortgage payments.

Foreclosure mediation provides you and your lenders the opportunity to work with a neutral third party to reach a resolution. In Washington, the Foreclosure Fairness Act provides homeowners with a mediation option to negotiate with their lenders and explore alternatives to foreclosure.

If your lender refuses to work with you, you can explore other options like refinancing, applying for government assistance programs, or selling your home to avoid foreclosure. You may also want to consult with an experienced Yakima County attorney to explore other legal actions you can take.

When facing the threat of foreclosure, the guidance and expertise of a skilled Yakima County attorney can make all the difference. They can help you navigate this complicated process and provide you with support along the way as you work to save your home.

Equipped with in-depth knowledge of both federal and Washington state laws designed to protect you, these legal professionals can explain the steps involved in foreclosure so that you can make more informed decisions.

You can also count on them to negotiate on your behalf for changes to your mortgage terms or a repayment plan. Make sure to consult with your attorney and explore all of your options so you can take the steps necessary to save your home.