If you are facing foreclosure, you are most likely feeling overwhelmed at the thought of losing your home. Take a deep breath and let’s cover your options based on the stage of foreclosure.
This article is designed to be a first step in researching your options. Please note that the information below is specifically written for Washington residents experiencing foreclosure and could change. Consult a housing counselor or an attorney to verify your options. Free resources are listed below.
First, it is best to know that you have help available to you – and some of them are free! You’ll want to act as soon as possible as your options will expire.
After missing one or more mortgage payments, your bank will send you a certified Notice of Pre-Foreclosure Options. This is the best time to call a housing counselor. They can help you send a certified letter back with a Meet and Confer request. At this meeting you can reach an agreement to modify your loan and create a new repayment plan.
If you didn’t respond to the first letter or if an agreement could not be met, you will receive a Notice of Default after at least 30 days. At this point you will need a mediation service, but the mediation must be requested through a counselor or an attorney. You cannot request a mediator yourself. This will stop the foreclosure process until an agreement is reached.
If an agreement still has not been agreed upon, the bank will send a Notice of Trustee’s Sale. This notice is public. This is possibly your last chance to come to a resolution. You will have a final 20 days to go into mediation. If the Trustee sale is scheduled after those 20 days, and you have not reached a resolution with your lender, you will have 120 days to move before the home is sold. After the sale you can stay in your home for an additional 20 days.
Don’t wait until it is too late. Here are a few options you have available to you:
Selling your home while in foreclosure is a great option for many homeowners as it can save your credit history so you can secure a new mortgage when you are ready. In some cases, you may even be able to walk away with a profit.
If you decide to sell your home, consider the quickest sale possible. Time is of the essence.
Home buyers are a great place to start as they can buy your home quickly – sometimes in a matter of days. In most cases, you don’t need to schedule inspections, showings, wait for lender approval, or even clean.
If you’d rather go the traditional route of selling your home, make sure to start as early as possible as the lender’s foreclosure sale will nullify any contract or agreement you have with a buyer. The sale must close before the foreclosure sale takes place. This is why some homeowners prefer professional home buyers instead.
You have many options at your disposal. Nine8 Redevelopment is a professional home buyer in Washington State and we are happy to meet with you to discuss this as one of your options while facing foreclosure. We can give you a fair offer for your home, close quickly, and even cover your local move into a new home.
Washington Homeownership Resource Center – (877) 894-4663
They can get you connected to a free housing counselor.
You may also be eligible for free mediation if you have received a Notice of Default from your lender and you’ve lived in the home when the foreclosure process started.
More resources are available through the Foreclosure Fairness Program. http://www.commerce.wa.gov/wp-content/uploads/2015/11/Borrower-Options-After-Mediation-2-6-2015-002.pdf