I want to make sure I'm understanding my state law correctly, do I have at least 120 days to stay AFTER I first receive notification that they are going to foreclose? Or is it only 30 days? For the record, I haven't received anything yet except a letter from my 1st and 2nd telling me that I'm not responsible for anything because of the Ch. 7. I'm in WA state.
How are Washington mortgages/trust deeds foreclosed?
The primary method of foreclosure in Washington involves what is known asnon-judicial foreclosure. This type of foreclosure does not involve court action but requires notice commonly callednotice of sale. When thedeed of trust is initially signed it will usually contain a provision called apower of sale clause, which upon default allows atrustee to sell the property in order to satisfy the underlying defaulted loan. Thetrustee acts as a representative of the lender to effectuate the sale which typically occurs in the form of an auction. Because this is a non-judicial remedy, there are very stringent notice requirements and the legal documents are required to contain thepower of sale language in order to use this type of foreclosure method.
Power of Sale Notice Requirements:
1. Prior to initiating a foreclosure sale the lender must serve anotice of default to the borrower at least 30 days before the proposed sale moves forward. This must be sent by certified or registered mail, and be sent to theattorney for the borrower, if any, and either posted on the subject property or personally served on borrower.
2. Notice of default as described above must contain certain information, including a description of the default, thelenders identification of the deed of trust and a breakdown of foreclosure costs and fees. At any time up until 11 days before the trustee's sale the loan may be reinstated. The loan may be fully paid off at any time prior to the sale. The lender has discretion to reinstate any loan later than 11 days before any sale.
3. In the event the loan default is not cured during the initial 30-day period referenced in the notice of default, at least 90 days prior to the trustee's sale, thetrustee must mail anotice of trustee's sale to the borrower, and all lien holders and any other parties of interest. This notice must also be recorded with theauditor of the county in which the property is located and otherwise be posted and served in the same manner as the notice of default. The notice must also be published in an approved newspaper for legal notices at two specified time periods for the preceding month before the sale.
4. Foreclosure sales must take place between 9AM and 4PM on a Friday, unless the Friday is a legal holiday, then the sale will occur the following Monday. Sales must occur within 190 days after the date of first default but may be extended up to 120 days at the trustee's discretion. In the event of a bankruptcy, a sale may be reinstated no more than 45 days from the dismissal of the bankruptcy or lifting of theautomatic stay.
In Washington, thelenders can also go to court in what is known as ajudicial foreclosure proceeding where the court must issue a final judgment of foreclosure. If thedeed of trust does not contain thepower of sale language, the lender must seekjudicial foreclosure. The property is then sold as part of a publicly noticed sale. A complaint is filed in court along with what is known alis pendens. Alis pendens is a recorded document that provides public notice that the property is being foreclosed upon.
How are Washington mortgages/trust deeds foreclosed?
The primary method of foreclosure in Washington involves what is known asnon-judicial foreclosure. This type of foreclosure does not involve court action but requires notice commonly callednotice of sale. When thedeed of trust is initially signed it will usually contain a provision called apower of sale clause, which upon default allows atrustee to sell the property in order to satisfy the underlying defaulted loan. Thetrustee acts as a representative of the lender to effectuate the sale which typically occurs in the form of an auction. Because this is a non-judicial remedy, there are very stringent notice requirements and the legal documents are required to contain thepower of sale language in order to use this type of foreclosure method.
Power of Sale Notice Requirements:
1. Prior to initiating a foreclosure sale the lender must serve anotice of default to the borrower at least 30 days before the proposed sale moves forward. This must be sent by certified or registered mail, and be sent to theattorney for the borrower, if any, and either posted on the subject property or personally served on borrower.
2. Notice of default as described above must contain certain information, including a description of the default, thelenders identification of the deed of trust and a breakdown of foreclosure costs and fees. At any time up until 11 days before the trustee's sale the loan may be reinstated. The loan may be fully paid off at any time prior to the sale. The lender has discretion to reinstate any loan later than 11 days before any sale.
3. In the event the loan default is not cured during the initial 30-day period referenced in the notice of default, at least 90 days prior to the trustee's sale, thetrustee must mail anotice of trustee's sale to the borrower, and all lien holders and any other parties of interest. This notice must also be recorded with theauditor of the county in which the property is located and otherwise be posted and served in the same manner as the notice of default. The notice must also be published in an approved newspaper for legal notices at two specified time periods for the preceding month before the sale.
4. Foreclosure sales must take place between 9AM and 4PM on a Friday, unless the Friday is a legal holiday, then the sale will occur the following Monday. Sales must occur within 190 days after the date of first default but may be extended up to 120 days at the trustee's discretion. In the event of a bankruptcy, a sale may be reinstated no more than 45 days from the dismissal of the bankruptcy or lifting of theautomatic stay.
In Washington, thelenders can also go to court in what is known as ajudicial foreclosure proceeding where the court must issue a final judgment of foreclosure. If thedeed of trust does not contain thepower of sale language, the lender must seekjudicial foreclosure. The property is then sold as part of a publicly noticed sale. A complaint is filed in court along with what is known alis pendens. Alis pendens is a recorded document that provides public notice that the property is being foreclosed upon.