What are the laws governing foreclosure?

In Washington, the laws governing foreclosure are designed to protect mortgagees or those who have borrowed money to purchase real estate. The process of foreclosure is legally known as ‘trustee’s sale’ and a Trustee, usually a lawyer or title company, must be involved. Prior to the Trustee’s Sale, the lender must first provide written notice to the borrower informing them of the default and the right to cure the default. This notice must include information about the foreclosure process and a list of housing counseling services. The borrower then has the right to “cure” their default by paying all of the past due amounts and any late fees. Once all of the notices have been sent, the Trustee must then publish notice in the newspaper to inform the public of the sale. On the day of the sale, all bids must be sealed, and the highest bidder must be approved by the court. The sale is finalized when the deed is transferred to the new rightful owner and the prior mortgage is discharged. After the sale is completed, any remaining proceeds must be distributed to any lien-holders in the order in which their security was recorded. If there are any proceeds remaining, they must be distributed to the borrower who formerly held the mortgage. Foreclosure laws are in place to protect borrowers and ensure fairness in all transactions. It is important to understand your rights and the foreclosure process before entering into any agreement so you know what to expect in the event of default.

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What are the laws governing foreclosure?

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