Washington State Foreclosure Laws:
Washington, lenders
may foreclose on deeds of trusts or mortgages in
default using either a judicial or non-judicial
foreclosure process.
Washington
State Foreclosure Laws:
Judicial Foreclosure (not common in
Washington)
The judicial process of foreclosure, which involves
filing a lawsuit to obtain a court order to
foreclose, is used when no power of sale is present
in the mortgage or deed of trust. Generally, after
the court declares a foreclosure, the property will
be auctioned off to the highest bidder.
Washington State Foreclosure Laws:
Non-Judicial Foreclosure
The non-judicial process of foreclosure is used when
a power of sale clause exists in a mortgage or deed
of trust. A "power of sale" clause is the clause in
a deed of trust or mortgage, in which the borrower
pre-authorizes the sale of property to pay off the
balance on a loan in the event of the their default.
In deeds of trust or mortgages where a power of sale
exists, the power given to the lender to sell the
property may be executed by the lender or their
representative, typically referred to as the
trustee. Regulations for this type of foreclosure
process are outlined below in the "Power of Sale
Foreclosure Guidelines".
Washington State Foreclosure Laws:
Power of Sale Foreclosure Guidelines
-
- If the deed of trust or mortgage contains a
power of sale clause and specifies the time,
place and terms of sale, then the specified
procedure must be followed. Otherwise, the
non-judicial power of sale foreclosure is
carried out as follows:
- The notice of sale must be transmitted
both by regular mail and by certified mail,
return receipt requested, to the borrower at
their last known address, and by regular
mail to the attorney of record for the
borrower, if any, not less than thirty (30)
days prior to the day of sale.
A notice of the sale once a week,
consecutively, for four (4) weeks, in any
daily or weekly legal newspaper of of
general circulation published in the county
in which the property is located.
Additionally, the notice must be posted in
two public places, one of which must be the
courthouse door, in the county where the
sale is to take place for a period of not
less than four weeks prior to the day of
sale.
Said notice must contain the time and place
of the foreclosure sale, the names of the
parties to the deed, the date of the deed,
recording information, a property
description, the terms of the sale, and the
borrowers rights (or lack of) redemption.
- The borrower has up to eleven (11) days
before the sale stop the foreclosure process
by paying the past due payments, plus
expenses, including trustee and attorney
fees.
- The sale must be made by auction between
9:00 am in the morning and 4:00 am in the
afternoon at the courthouse door on Friday
unless Friday is a legal holiday and then
the sale must be held on the next following
regular business day. The sale may not be
conducted less than 190 days from the date
of default and the highest bidder will
receive a certificate of sale.
The sale may be postponed (not exceeding one
(1) week next after the day appointed) by
giving notice and by posting written notices
of the adjournment under the notices of sale
originally posted.
If the non-judicial foreclosure process is used
by the lender, then it cannot sue for a deficiency
judgment. On judicial foreclosure sales, the
borrower can be sued for a deficiency, unless the
property is found to be abandoned for six (6) months
before the decree of foreclosure.
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