How does the lender recover legal fees and costs in a foreclosure?

In Washington, lenders typically recover their legal expenses and costs for foreclosure proceedings by auctioning the foreclosed property. The auction is usually held by a local government agency, such as the county sheriff or a court-appointed trustee. Buyers at the auction submit bids for the property, and the highest bidder is awarded the property. The proceeds from the auction are then used to pay off the mortgage debt and other costs associated with the foreclosure, including the legal fees and costs. The lender can also seek to recover legal fees and costs before the foreclosure process begins. This is generally done through the deed of trust, which is the contract that sets up the terms of the mortgage. The deed of trust may include language requiring the borrower to reimburse the lender for any fees and costs that result from legal action, including foreclosure-related costs. Ultimately, the legal fees and costs associated with foreclosure are paid with the proceeds of the foreclosure sale. If the proceeds are insufficient to cover the full amount of the costs, then the lender will typically have to absorb the remaining costs.

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How does the lender recover legal fees and costs in a foreclosure?

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