It's not over yet

Whether you are weeks away from the auction steps or you just received a Notice of Default (NOD) it's not time to give up. While there are no guarantees that we can stop a foreclosure, negotiating a short-sale acceptance by the bank is a much better option for you and the bank.  Regardless of when you were served the NOD there may still be time to work out a sale and prevent the damage to your record a foreclosure can cause.  

Washington State Foreclosure Process

1. Financial Distress & Delinquency

• Identification factors for a homeowner in distress
• Worried about their ability to continue making mortgage payments
• Realize their home is now "upside down"
• Mortgage payment(s) missed; unsure how to catch up
• Experiencing a permanent hardship (loss of job, etc.)

For all of the above - this is the time to evaluate options before the situation gets worse.

2. Notice of Default (NOD)

• At this stage, the lender (a.k.a. the bank) has the option to begin the foreclosure process.
• Each lender treats this level of delinquency differently, but once an NOD is received - options for avoiding foreclosure are limited
• An NOD is not a matter of public record, but it will likely be served either through certified mail or with a posting on your front door
• DO NOT ignore this notice!

3. Notice of Trustee Sale (NTS)

• This stage marks the beginning of active foreclosure
• This notice is delivered and posted on the property
• Once a matter of public record, expect an onslaught of junk mail from people/companies claiming they can help save your home
• While it is still possible to negotiate a successful short sale at this stage, options are severely minimized
• The sale date will be 90 days from the date of notice

4. Foreclosure

• This is the point of no return for the distressed homeowner who will, unfortunately lose both their home and their personal credit standing
• The lender will sell the foreclosed property at auction to the highest bidder
• Any other lender or lien holder can still legally sue the former homeowner to have the deficiency balance paid
• A completed foreclosure is the most damaging event for credit status - potentially worse than bankruptcy
• A notice of this foreclosure can remain on the former homeowner's credit bureau files for 7 years