Foreclosure Laws in Washington State

Washington state allows for both judicial and non-judicial foreclosures.

When a borrowers buys a home using a mortgage, the lender has the right to foreclose on the home if and when the borrower violates the terms of the loan. Washington state has numerous laws that govern the mortgage and foreclosure process. If you need legal advice about a Washington state foreclosure, contact a qualified attorney for help.

Judicial Foreclosures

Washington state allows for both judicial and non-judicial foreclosures. A judicial foreclosure is one where the borrower defaults on the mortgage and the lender files a foreclosure action in court. If the court rules in the lender's favor, it issues an order of sale that allows the lender to then sell the mortgaged property. The judicial foreclosure must be filed in the county in which the property or some part of it is located, according to the Revised Code of Washington section 61.12.040.

Non-Judicial

A non-judicial foreclosure is one in which the lender does not have to go to court to sell a mortgaged property in default. Washington allows lenders to use a trustee to hold a property deed in trust until the borrower satisfies the terms of the loan. Upon default on the mortgage, a lender can force the trustee to sell the deed without having to go to court. However, the deed of trust must contain a "power of sale" clause that specifically grants the lender the right to a non-judicial foreclosure, according to the Revised Code of Washington section 61.24.030. If it does not, the lender must go through the judicial foreclosure process.

Notification

Lenders must notify the borrower of the default status of the mortgage at least 30 days prior to issuing a notice of sale. The default notice must be sent through certified and registered mail, requiring someone at the property to sign when receiving it with a return receipt so the lender knows it was received. The lender must also ensure that the default notice is either physically posted on the property or personally served to the property. Once the notice of default is served, the lender can then issue a notice of sale. This must also follow the notification procedures of the notice of default, and the lender cannot sell the home until 90 days after notice of sale is served.

Timeline

Foreclosure sales must take place at least 190 days after the lender declares the mortgage in default. However, borrowers can still avoid foreclosure until 11 days before the actual sale. A borrower has the right to reinstate the loan until that 11 days. Borrowers must not only reinstate the loan, but they must also pay for any costs and attorneys fees incurred by the lender.

References

• Washington State Legislature: Revised Code of Washington Chapter 61.12
• Washington State Legislature: Revised Code of Washington Chapter Chapter 61.24
• Foreclosure Law: Washington Foreclosure Law Summary