Foreclosure Defense and Foreclosure Fairness Mediation Act Basics in Washington State
What is the foreclosure fairness mediation act?This is a new Washington State law, embodied in RCW 61.24, that requires mortgage creditors to offer Washington homeowners a chance to mediate prior to foreclosure.
There are two important meetings that you need to worry about. The first is called a meet and confer. This is where you have a chance to meet with a representative of the mortgage creditor and see if you can work things out. The meet and confer may be requested by the homeowner. The second important meeting is the mediation. This myst be requested by an attorney or authorized housing counselor.
How the meet and confer can help youThe meet and confer is the first bite at the apple to work things out. You can work with your mortgage creditor to submit a loan modification package or put some offers on the table. Additionally this extends the period of time before a notice of default can be sent out. The notice of default is the "starting point" for the foreclosure.
How the mediation can help youThe mediation will have a third party mediator present. They have the ability to certify that a bank is not mediating in good faith. If this occurs, this can be a defense to the non-judicial foreclosure of your home. The alternative is a very costly judicial foreclosure of your home. Accordingly, this helps to ensure the banks play fair.
Additionally, the banks will be required to produce the promissory note, the deed of trust, a mortgage accounting, and other documents. If there are errors, omissions, or other problems, this can help improve your negotiating position.
How an attorney can help youAn attorney with experience in bankruptcy, real estate law, and foreclosure law can help improve your odds of successfully negotiating with your bank. If the bank chooses not to play ball, then an attorney can help fight the foreclosure or file a bankruptcy to protect your financial freedom. Attacking the foreclosure from multiple angles is the best method to obtain the best results in your situation.