How to Stop House Foreclosure in Washington State
The state of Washington allows both types of common foreclosures, judicial and non-judicial. When a lender follows the judicial procedures, it needs to obtain a order of sale or a judgment for the loan balance from a judge. Following the non-judicial procedure allows the lender to sell the property under a power of sale to recover the loan balance. Whether you are fighting a non-judicial or a judicial foreclosure, using these options will stop the foreclosure process.
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Instructions
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Ask a close family friend or relative to purchase the home from you. They can rent back the house to you and apply that amount to the mortgage. This will prevent foreclosing on the home.
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Call your lender as soon as possible to discuss a loan modification. Some lenders are willing to work with you to restructure the terms and payments on the mortgage. Calling promptly will give the lender a sense of your determination to pay off your loan.
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Refinance the property. If your income is the same but your payments have increased due to the terms of your loan, you may be able to secure a fixed rate loan at a lower interest rate. Remember, though, that this requires money set aside for closing costs and other processing fees, including a reappraisal on the home.
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File Chapter 7 or 13 bankruptcy to keep your property. Bankruptcy allows you to keep exempt property, such as a home. By starting with a clean slate in terms of unsecured debt (i.e., credit cards), you will free up money to continue making payments on your home. Use this option only as a last resort because filing for bankruptcy will remain on your credit report for 10 years.
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Tips & Warnings
Washington does not have a right to redemption law, which means that once the lender has completed the foreclosure process, you will not be able to recover your property if you come up with the overdue amount at a later date.
