What is a foreclosure sale?

A foreclosure sale is a legal process in Washington that occurs when a homeowner fails to make regular payments on their mortgage. When a homeowner is unable to make their mortgage payments, they are in default of their loan agreement. The lender can then initiate a foreclosure process, which includes putting the house up for sale. The foreclosure sale is managed by a public auction where the highest bidder is allowed to purchase the house. The winning bidder pays the amount owed on the mortgage, plus all applicable fees and costs incurred during the foreclosure process. The homeowner is required to move out of the house before the foreclosure sale takes place. The lender may put the house up for sale before the foreclosure sale. This is called a pre-sale and it gives the lender an opportunity to try and receive some of the money owed to them before the foreclosure sale. The foreclosure process is initiated and overseen by the court system. The lender is required to provide proper notice to the homeowner before the foreclosure sale can take place. Additionally, the court will ensure that the highest bid offered at the foreclosure sale is fair and in line with the true market value of the house. Once the foreclosure sale is complete, the house is no longer in the possession of the former homeowner. The new owner can take steps to secure the house and begin the process of renovating or reselling it.

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What is a foreclosure sale?

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