What are the duties of the lender in a foreclosure?

In Washington, the lender has several duties as part of the foreclosure process which are all aimed at protecting the borrower’s rights and interests as well as the lender’s interests. The first duty of the lender is to provide the borrower with written notice of the default. This notice must include the amount due, the date on which the loan was due, and the right of the borrower to bring the loan current within a certain period of time. The second duty of the lender is to file the foreclosure complaint with the court. This complaint must state the amount of the loan that is in default, the date it was due, and the amount of the payments that the borrower has failed to make. The third duty of the lender is to provide the borrower with an opportunity to cure the default, which means to make the payments that are due in order to bring the loan current. The lender must give the borrower a reasonable amount of time in order to make the payments. The fourth duty of the lender is to follow all procedural requirements set forth by the court. This includes providing the court with all required documents and appearing at court hearings when required. Finally, the lender must properly apply any payments received from the borrower. If the borrower pays off the loan, the lender must return the deed of trust to the borrower. If the borrower fails to cure the default, the lender must follow the judgement of the court in order to proceed with the foreclosure.

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