Washington foreclosure law

Washington foreclosures may be done on mortgages and deeds of trust in default. Lenders can use either a judicial or non-judicial process, and the average timeline is 120 days or about four months.

Judicial foreclosure
The judicial foreclosure process is used when the mortgage contract does not contain a Power of Sale. The Power of Sale is a clause that allows the lender to proceed with the foreclosure directly. Without it, lenders have to file a lawsuit and get a court order before they can foreclose. If the court rules in favor of foreclosure, it orders the property to be sold and the home is sold via public auction.

Non-judicial foreclosure
The Power of Sale basically authorizes a lender to sell the borrower’s property as payment in case the latter commits a default. This power can be used by the lender himself, or given to a representative known as the trustee. The terms specified in the clause are usually followed, but if there are none provided, the following procedures will be carried out:

First, the lender sends a Notice of Sale to the borrower’s last known address, both by regular and certified mail, with a request for return receipt. If the borrower has an attorney of record, he or she will also be sent a copy via regular mail. Both notices should be sent at least 30 days before the sale date.

The notice must contain the following information:

-a description of the home in default
-the time, date, place, and terms of the sale
-the borrower’s rights, if any
-the names of parties involved in the deed
-the date the deed was signed
-recording information for the deed

Next, the county sheriff publishes the notice in a locally circulated newspaper at least once a week for four consecutive weeks. It will also be posted at the courthouse door of the county where the auction will take place, as well as one other public place in the said county. The notice must be posted at least four weeks before the foreclosure sale.

The borrower can cure the debt and stop the foreclosure up to 11 days before the sale. This is done by settling the delinquent debt and paying associated costs, including the attorney’s fees and trustee’s fees.

In Washington, the sale can only take place at least 190 days after the date of default. The foreclosure is held at the courthouse door on a Friday, between the hours of 9am and 4pm. If the Friday falls on a legal holiday, the sale is held instead on the next regular working day. The home is sold to the highest bidder, who will then receive a certificate of sale.

Rights of redemption and deficiency claims
Borrowers usually have eight months after the sale to redeem their home by paying the foreclosure sale price, plus interest. However, Washington foreclosure law allows lenders to waive the borrower’s redemption rights, in which case the home cannot be redeemed.

Deficiency judgments—personal claims against the borrower for debts not covered by the foreclosure sale—are only allowed in judicial foreclosures. Lenders who foreclose in the judicial process can seek deficiency judgments if the foreclosure sale is not enough to pay off the total debt. However, this right is waived if the home is found to have been abandoned six months before the decree of sale is issued.

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