Washington Foreclosure Information
The state of Washington adheres to the title theory of property ownership. This theory holds that the lending agent maintains ownership of the property until the mortgage contract has been satisfied in full. This theory influences the foreclosure regulations enacted by the state. The foreclosure process in Washington usually takes 120 days to complete.
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Foreclosure Methods
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The state of Washington observes two methods of foreclosure on property. The judicial method requires a court order before foreclosure proceedings may begin. The court will typically set a deadline for the borrower to make the necessary payments before ordering the home to be sold at auction. The nonjudicial method gives the lending agent the ability to bypass the court order by entering a power-of-sale clause into the mortgage contract. This clause allows the lender to foreclose once the mortgage loan is in default.
Power of Sale and Foreclosure Process
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The power of sale usually sets forth all of the specific requirements for the foreclosure sale to take place. In the event this information is not present, then Washington's statutes would take effect. Washington requires the lender to mail two notices to the borrower, one by regular mail and one by certified mail at least 30 days before the sale commences. A notice of sale must be published in the local newspaper at least once per week for four weeks before the sale, and the same notice must be posted in at least two public places, including at the courthouse. The auction sale must take place on Friday, at the courthouse, between the hours on 9:00 a.m. and 4:00 p.m. The borrower may stop this process up to 11 days prior the sale by paying the past due amount, plus any applicable fees.
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Deficiency
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When the property sells for less than the balance due on the loan, a deficiency has occurred. The lender has the right to sue the borrower for the remaining balance if a judicial foreclosure method was used. A deficiency judgment may not be sought if a nonjudicial method was used.
Last Chance
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Washington gives borrowers one final chance to keep the property if a judicial method was used in the foreclosure. The borrower has one year from the date of the auction to pay the full balance due on the loan, plus any foreclosure fees. This right of redemption does not apply to the nonjudicial method of foreclosure.
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