Clark County WA Real Estate Blog

You open your mail. It looks official, and it’s from your mortgage company.  Accross the top it reads ” Notice of Default”.  Homeowners accross the country are getting these every day, and although it’s scary, there are things that you can do to avoid foreclosure.  Here in Washington, it’s not as commonplace, but it still happens.  Here’s a timeline for the Washington State foreclosure process:

1. 11/01/2007  Homeowner stops making payments, and loan is deliquent.
2. 2/15/2008 Notice of Default letter is sent by lender.
3. 4/05/2008 Lender files Notice of Trustees Sale with Clark County
4. 7/09/2008 Property is auctioned off at Trustee Sale at Court House

So, as you can see, from the time you stop making payments, it will take approximately 8 months until your home is officially foreclosed on.  During this time you have the following options:

• Cure the default by making payments covering missed payments, fees, and penalties.
• Work with a Short Sale Specialist to list your home as a short sale.
• Do nothing and wait for the foreclosure auction at the Court House.

If you decide to sell your home, the first contact with your agent will be very important. Your agent will need to know who your mortgage company is, the loan#,  contact name, authorzation form (to talk to your mortgage company),  loan statements, tax returns, bank statements, pay stubs,  as well as Profit/Loss statement if you have a business.  Your agent will also help you to draft a Hardship letter to the lender,  making your case for a short sale.   Banks are willing to work with homeowners who owe more than the house is worth, but they will require a lot of documentation.  You must be able to prove financial hardship and that your home is worth less than the loan.

If you have the potential of foreclosure in your future, I suggest you be proactive.  Contact a Realtor and discuss how a short sale might work for you. It will cost you nothing to find out your options, and it certainly will reduce the stress level.

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