Can the lender continue to collect late fees and interest during a foreclosure sale?

In Washington, the answer to this question is yes. The lender is still able to collect late fees and interest during a foreclosure sale, regardless of the potential buyer. A homeowner in foreclosure can still be held responsible for paying the mortgage debt, including fees and interest, up to the date of the sale. This means that the lender can continue to charge late fees and interest, even if the property is in the process of being sold. The Washington State Foreclosure Fairness Act (FFA) permits lenders to continue to both assess and collect late fees, as well as other charges associated with the mortgage. The FFA also requires lenders to provide borrowers with a “Statement of Rights and Obligations” which states that lenders can continue to charge late fees and interest on the mortgage debt up to the date of the sale. In addition, in the event a foreclosure sale is held, the lender may also be able to collect a deficiency judgment in the event that the amount of the sale is less than the amount due on the loan. This means that the lender can obtain a judgment from the court which allows them to collect the remaining debt from the homeowner, including late fees and interest. It is important to understand that the Washington Foreclosure Fairness Act does not limit a lender’s right to collect late fees and interest, nor does it prevent them from pursuing a deficiency judgment, so long as the applicable regulations are being followed. Therefore, it is possible that a lender can continue to collect late fees and interest in the event of a foreclosure sale.

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Can the lender continue to collect late fees and interest during a foreclosure sale?

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