Are you facing foreclosure as a homeowner in Washington? If so, you might wonder what action can be taken to safeguard your credit.
This blog post will provide an overview of the Washington foreclosure process. Find out how to avoid foreclosure and what options you have if you can’t make your mortgage payments. Keep reading if you are feeling lost and don’t know where to go for help.
What is Foreclosure?
Foreclosure is the process of seizing a mortgaged property as a result of non-payment of a mortgage loan. Generally, federal law prohibits foreclosures until 120 days after your mortgage becomes past due. There are, however, some exceptions.
How to Avoid Foreclosure
There are a few options available to homeowners in default on their mortgages.
Talk to Your Lender
In case you are having trouble making payments, your lender should be contacted first. Your lender may be able to help you get back on track by arranging smaller payments over an extended period of time.
Request a Loan Modification
A loan modification may be an option for you if you are having trouble making your mortgage payments. Your loan’s interest rate or repayment period might be modified to prevent foreclosure.
Sell Your Home
Selling your home might be a good option if you are facing financial difficulties. Although this may not be an easy decision, it can prevent you from going into foreclosure.
How to Delay Foreclosure
To slow down or halt foreclosure, you can do a few things.
Reinstate the Loan
According to Washington law, you can reinstate your loan prior to the 11th day before the auction.
Redeem the Property
Some states allow the foreclosed borrower to redeem the house after the foreclosure sale. Post-sale redemption is not permitted under Washington law after a nonjudicial foreclosure.
File for Bankruptcy
Bankruptcy has shortcomings, but it can help prevent foreclosure as creditors are not allowed to collect debts after filing bankruptcy. Contact a bankruptcy lawyer to learn more about your options.
The Foreclosure Process in Washington
Defaulting your mortgage payments in Washington may result in a judicial or nonjudicial foreclosure. Taking over a home through foreclosure can be complicated, so it is important to understand how they work. In Washington, the foreclosure process can take up to four months to complete.
Judicial Foreclosure
A judicial foreclosure begins when a lender files a lawsuit and asks a court for an order allowing a foreclosure sale. Without a written response, the lender will automatically win the case. In the event that you choose to defend the foreclosure lawsuit, the court will review the evidence and determine the winner based on the evidence. Your home will be auctioned if the lender wins and the judge enters a judgment.
Nonjudicial Foreclosure
To complete an out-of-court foreclosure, the lender must follow the state statutes. Lenders can sell a home at a foreclosure sale after completing the required steps. In Washington, most lenders use the nonjudicial process because it is faster and cheaper than litigating the matter in court.
The Consequences of Foreclosure
Foreclosure can have devastating consequences for homeowners and their communities. The foreclosure process can result in homeowners losing their homes and harming their credit scores. As a result, it may be difficult to obtain a mortgage or credit line. Furthermore, foreclosure can be emotionally draining.
There are also negative effects associated with foreclosure on communities. It is possible for a foreclosed neighborhood to have decreased property values, resulting in a decline in tax revenues and an increase in crime.
Resources for Homeowners Facing Foreclosure in Washington
If you are facing foreclosure in Washington, several resources are available to you. The U.S. Department of Housing and Urban Development offers homeowners counseling and assistance to prevent foreclosure. You can also contact The Department of Financial Institutions to be connected with a counselor.
Avoid Foreclosure by Selling Your Home for Cash in Washington
If you are facing foreclosure, selling your house for cash can help restore your peace of mind. At Favor Home Solutions, we know you are going through a difficult time, so you can count on us to guide you through the entire process and provide you with a fair cash offer for your home.
We will take care of:
- Closing on the date of your choice
- Handling all the paperwork
- Paying all the closing costs
- And much more!
If you’re interested in hearing more about getting a free, no-obligation offer for your home, contact us today!
