Understanding Home Foreclosure and How a Mount Vernon Attorney Can Help Guide You

Skagit County, Washington, is well-known and loved for its iconic tulip fields and the serene shores of the Puget Sound. But for some residents, financial hardships can lead to challenges like home foreclosure.

Home foreclosure certainly can be distressing for any homeowner, and figuring out the path to end the struggle can be overwhelming without guidance. If you are a Washington resident facing foreclosure of your Mount Vernon home, it’s important to understand your rights, the legal process, and the options available to you.

Washington foreclosure attorneys in Mount Vernon will prove to be invaluable as you navigate the twists and turns that come with this complicated legal process.

Foreclosure is the legal process in which a lender takes possession of a property due to the homeowner’s failure to make the mortgage payments. This process allows the lender to recover the mortgage loan balance through a home sale. In Washington, foreclosure laws are outlined in RCW 61.24, which governs deeds of trust and their enforcement.

While Washington primarily uses non-judicial foreclosure, judicial foreclosure is also an option. Let’s take a closer look at each:

• The Deeds of Trust Act governs non-judicial foreclosure and sets requirements for notifications, timelines, and the trustee sale process.
• This is the most common type in Washington.
• The lender doesn’t involve Skagit County Court, but they do follow through with specific legal steps to auction off the property.
• Lenders can’t pursue any additional funds if the home sale doesn’t cover the full loan amount.
• The process is faster and less costly than judicial foreclosures.

• This process involves filing a lawsuit in Skagit County Court.
• This route is taken when there are disputes or if the lender wants to pursue a deficiency judgment (the remaining debt after the property is sold).
• It is governed by RCW 6.23 and provides more opportunities for the borrower to challenge the process.
• Borrowers have up to one year to repurchase their property under certain conditions.

When you are facing foreclosure in Mount Vernon, it’s important to learn everything you can about the timeline involved.

• Missed Payment: After you miss a payment, the lender will contact you to remind you of your financial obligations. This is also when the late fees will start to accrue.
• Notice of Default: This is typically sent to you after 90 days of missed payments. RCW 61.24.031 requires this notice, which gives you approximately 30 days to catch up on your payments or negotiate with the lender.
• Notice of Trustee’s Sale: If no resolution has been reached, the lender then issues a Notice of Trustee’s Sale, which includes information regarding the sale date, time, and location. This provides you with 120 days' notice before the property auction takes place.
• Auction and Sale: Finally, the property is auctioned off to the highest bidder or is reverted to the lender. This is also known as a trustee’s sale, which is conducted publicly, often on the courthouse steps.
• Eviction: If the borrower remains in the home after the sale, the new owner will start the eviction process.

Under Washington’s Foreclosure Fairness Act (FFA), residents can seek foreclosure assistance, including civil legal aid, free housing counseling, and education and outreach resources, and be provided with the opportunity for mediation. All of this is done before proceeding with the foreclosure process.

Mediation can be a good way to negotiate loan modifications or look into other foreclosure avoidance solutions. This process, which is a requirement for borrowers with residential deeds of trust, must be requested within 20 days of receiving the Notice of Default. Many homeowners have avoided foreclosure by going this route.

During mediation, the lenders meet face-to-face with the borrower and a neutral mediator to discuss possible loan repayments or modifications.

If you are face to face with a foreclosure on your Mount Vernon home, there are several options to protect your home or mitigate some of the loss you are about to experience.

• Loan Modification: You can modify loan terms to make the payments more manageable. This usually involves extending the loan term or reducing the loan’s interest rate. You may even be able to roll missed payments into the loan balance.
• Repayment Plan: Another option is to negotiate with your lender and see if they will allow you to catch up on your missed payments over some time. This is a good option if your current financial difficulties are just temporary.
• Forbearance: A forbearance can temporarily suspend or reduce your mortgage payments for a set time. This is the option usually used during a financial hardship like a job loss or medical issues.
• Deed in Lieu of Foreclosure: Transferring ownership of your property to the lender to satisfy your debt is also an option. You can do this voluntarily to avoid foreclosure. However, you still lose your home.
• Short Sale: During a short sale, you sell your home for less than the total mortgage balance. But you will need the lender’s approval for this. This route will also impact your credit score.
• Bankruptcy: You can speak with your Mount Vernon bankruptcy attorney about filing for Chapter 13 bankruptcy. This may allow you to keep your home by reorganizing your debts. Or file for Chapter 7 bankruptcy, which may delay the foreclosure but still generally results in the loss of the home.
• Refinancing: If you have a good credit score, you can refinance your loan to secure a new, lower interest rate or even better terms.
• Emergency Assistance Programs: Programs like the Washington Homeownership Resource Center offer financial assistance and counseling services.

Once a foreclosure is complete, you typically lose ownership of the property. However, Washington law provides a redemption period under RCW 6.23.010 for judicial foreclosures. During this time (usually about a year), you can reclaim the property by paying the full sale price and any other related costs.

Here is what you can expect if the foreclosure is unavoidable:

• Eviction: If you remain in the property after the auction and sale, the new owners will then file for eviction.
• Deficiency Judgments: If it were a non-judicial foreclosure, the lender wouldn’t be able to pursue you for any additional funds to cover any portion of the unpaid loan balance. On the other hand, a judicial foreclosure allows the lender to seek a deficiency judgment under RCW 4.16.040.
• Credit Impact: A foreclosure will significantly damage your credit score and can stay on your credit report for seven years.
• Future Homeownership: You may be able to secure an FHA loan three years after your foreclosure if you meet specific criteria.

Yes, there are still some steps you can take to stop the foreclosure sale, but the timing is critical.

• Curing the Default: You can choose to pay the past due amount, including any fees and interest, up until 11 days before the scheduled sale date. After this point, curing may no longer be a viable option for you under RCW 61.24.090.
• Requesting Mediation: If you qualify under the Foreclosure Fairness Act, mediation can help you delay the sale while you explore any loan remodification loans available to you.
• Filing for Bankruptcy: When you file for bankruptcy, an automatic stay is put into place, which will temporarily halt your foreclosure proceedings.

The timeline for foreclosure in Washington depends on the method you choose:

• Non-Judicial Foreclosure: This method is faster, typically taking 6-9 months from the first missed payment to the trustee’s sale.
• Judicial Foreclosure: This longer process can take over a year, depending on Skagit County Court scheduling and whether you contest the proceedings.

Once you receive this notice, you know that the foreclosure proceedings have started. However, it isn’t too late to try to save your home.

• Respond to the Notice immediately: Contact your lender right away to discuss repayment or modification options.
• Review the Notice: Make sure the document you received complies with Washington’s legal requirements under RCW 61.24.030, such as proper service and detailed information on the loan and default.
• Seek Legal Assistance: Consulting a Skagit County attorney can help you explore your options and learn more about your legal standing.

Remember, you don’t have to go through this alone. A qualified Mount Vernon attorney can help you navigate the process while offering valuable legal advice and protecting your rights and your home.

These legal professionals are equipped with a good understanding of the complex laws, strict deadlines, and lender requirements. Count on them to review your case, evaluate your options, represent you in Skagit County Court proceedings, and provide you with emotional support as you regain stability.