When facing the overwhelming and stressful possibility of foreclosure on your home, the guidance and experience of a real estate lawyer in Washington can provide valuable assistance in protecting your rights as a homeowner.

Falling behind on your mortgage payments is a financial nightmare that can cause difficulties in many ways, and harm to your credit score is the least of your worries. The bank can take your home from you and sell it to someone else after foreclosure.

In Washington, they do not have to go through the court system to obtain this result. They can sell your home at an auction after giving you notice and some time to cure the nonpayment. 

You still have legal rights during this process, but the speed at which the foreclosure process occurs and the financial interests of third parties can compromise your legal rights.

Regardless of whether you choose to try to keep your home, there is still quite a bit at stake. Of course, you can work with the bank to devise a plan if they will work with you. Even if they intend to go ahead and foreclose on your home, some safeguards in the process can protect your legal rights.

A foreclosure attorney can advise you of your options in the process, and they can work to protect your legal rights. They can thoroughly review the terms of your mortgage and identify any potential legal defenses or violations.

These lawyers are well-versed in mortgage laws and regulations and can spot any unfair practices or discrepancies. Engage a foreclosure attorney early in the process to preserve any of your available options. Ignoring the process and any communications from your lender can harm your legal position.

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How the Foreclosure Process Works in Washington

A bank cannot take your home away because you fell behind on your mortgage payments. Before they can foreclose on your home, they must follow an entire process.

They follow numerous legal requirements to the letter. If they don’t, you can even sue the bank for illegal conduct and obtain damages.

You need a foreclosure attorney representing you and explain how the process works in Washington. 

• The lender considers you delinquent on your mortgage when you fall behind and miss one payment.
• The lender will send a notice of default when you are at least three months behind on your mortgage payments (one missed payment does not allow the bank to initiate the foreclosure process immediately).
• You have 30 days after the bank sends the notice to cure the defect.
• You may have the potential to mediate any dispute with the lender through the help of a third party.

How a Foreclosure Lawyer Can Help When You Fall Behind

When you default on your loan, you have specific options, and a foreclosure attorney will explain what you can do.

You may negotiate a solution with the lender that allows you to get current on your mortgage and keep your home.

Your foreclosure attorney may explain whether bankruptcy is the right option for you. If you file for Chapter 13 bankruptcy, it can put a stop to the foreclosure. An automatic stay goes into effect at the beginning of the bankruptcy process, ending any efforts to take your home from you. Bankruptcy can keep your home from foreclosure, but you may prefer to let the process proceed. A foreclosure attorney can protect your legal rights at all points of the process.

A Chapter 13 bankruptcy can give you time to restructure your debts and make the payment on which you have fallen behind. It differs from a Chapter 7 bankruptcy because it does not liquidate your assets. Thus, the bank cannot take your home from you (assuming you have equity above the exemption for personal residences in Chapter 7 bankruptcy).

Banks will often hire third parties to conduct foreclosures. These people usually want to get their hands on your home and may take shortcuts. They can even wrongfully try to foreclose on your home, and you may need to take legal action to stop the process.

These third parties are only part of the foreclosure process because they want to profit at your expense. Since there is money in it for them, they may take all sorts of shortcuts for which you need to be on the lookout.

You May Negotiate With the Lender

Sometimes, the lender wants to avoid foreclosing on your property. They may realize that they can take a financial loss on your home, or they do not want to take the risk of taking over ownership of your home. Banks may work with you to avoid foreclosing on your property.

Whether you have any leverage to negotiate depends on your situation. Banks may work with you when a foreclosure lawyer approaches them. They may give you an additional grace period or modify the terms of your loan to keep the foreclosure from occurring.

You only know whether a lender will negotiate with you once you at least ask the question. When you hire an experienced foreclosure lawyer, they can deal with the bank on your behalf. They may obtain better payment terms if the lender will modify your loan, and federal and state programs may offer assistance. Sometimes, learning what is available to you is the first step in working your way out of a difficult financial situation.

Never Ignore Letters from Your Lender

Since the laws differ in Washington, you cannot assume you will get your day in court to stop the foreclosure. Washington allows nonjudicial foreclosures, and lenders favor them as they are faster, cheaper, and easier than going through the court. The lender and third party can even make a profit in the process.

Thus, the bank can take your home from you, and you may only know it once the process occurs if you do not stay on top of things. The lender will need to notify you that you are in default.

Never ignore any communication from your lender because you are effectively surrendering your legal options and the ability to do anything about the foreclosure. You may still act in time to take steps to help yourself or at least stop it.

Obtaining Surplus Funds from the Foreclosure

You may recover money after the foreclosure process. The bank can only take the money you owe on the mortgage (in addition to some reasonable costs associated with the foreclosure).

You may have owned your home for a considerable time, building up equity. Falling behind on your mortgage payments does nothing to change that.

Real estate values in Washington have appreciated considerably in recent years. If you have owned your home for a long time, it is likely worth far more than you paid for it. You have the legal right to any excess money the bank receives when they take your home because it is yours.

The trustee should send you the money at the foreclosure’s conclusion, assuming they have your last known address. However, the trustee may not make it easy for you to get your money. They can attach unreasonable fees that they want to deduct from the sale price of your home.

If you are having difficulty getting the money that you deserve, a foreclosure attorney can communicate with the trustee or file a lawsuit in court so you get paid fully.

Challenging the Actual Sale of Your Home

The bank must act using commercially reasonable methods if they sell your home. Preferably, the bank will list your property at a foreclosure auction where multiple potential buyers can bid and use a trustee to conduct the transaction.

The trustee owes you a fiduciary duty when they perform the transaction. They must use reasonable care and cannot act with a conflict of interest (such as selling the property to a related entity).

The trustee’s actions are important because they determine whether you may receive surplus funds or owe the bank money. If the trustee does not handle the sale properly, it can gravely affect your financial situation and ability to rebuild. A foreclosure attorney may file a lawsuit against the lender if the trustee breached the fiduciary duty they owe you.

Filing a Lawsuit Against the Lender for Misconduct

You may also have potential grounds for a lawsuit against the lender if their misconduct in the lending process caused your precarious position.

For example, you can have trouble making mortgage payments because the bank failed to disclose the correct payment terms when you took out the mortgage and may attach exorbitant fees. Then, you can file a lawsuit against the lender under the Truth in Lending Act. You can hold the bank liable for damages and twice the amount of any finance charge in connection with the transaction.

A foreclosure attorney has experience with the TILA and can guide you through the process. They can review your loan documents and the transaction with the bank to determine whether you have a potential lawsuit under the TILA. A foreclosure attorney will advocate for you, present your case, and argue for the best possible outcome.

Hiring a Real Estate Lawyer Is Worth it During the Foreclosure Process

You may hesitate to hire a foreclosure attorney because your funds are already limited. After all, you are likely in financial distress, as you have fallen behind on mortgage payments.

However, you should try, if at all possible, to come up with the money you need to hire a foreclosure lawyer. Not only may you act to stop the foreclosure process and remain in your home, but you may have other legal grounds for action against the lender and the trustee.

The results of the foreclosure process can remain with you for many years to come, both in terms of your finances and your ability to purchase a new home in the future. Hire a foreclosure attorney as an investment in your property rights and financial future.

The experience and support of a skilled real estate lawyer in Washington can be invaluable when facing foreclosure. They know the state regulations and how to handle foreclosure law and safeguard your rights as a homeowner.

From reviewing your mortgage terms to representing you in court, your lawyer will guide you every step of the way, working towards the best possible resolution for your situation.

Do not face the foreclosure process alone—seek assistance from a trusted real estate lawyer.

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