Foreclosure Fairness Act: Empowering Borrowers in Washington State

Foreclosure Fairness Act: Empowering Borrowers in Washington State

Legislation was enacted in 2011 which has been a potential boon to the underwater borrower. That legislation is known as the Washington State Foreclosure Fairness Act.
This legislation obliges lenders to engage in mediation with an impartial mediator – one who has been qualified to act as such by the Washington State Department of Commerce.

The process is, and since 2011, has been working well.

At the worst, use of the process keeps borrowers in their home while they try to work something out. Better yet however, foreclosure will not occur while the mediation process is proceeding.

Also, very importantly, the Bank must answer to the mediator and act in a fair and responsible way.

The stay of foreclosure allows the borrower to “breathe” and gather and present his/her records and engage in a good faith effort to arrive at a result that is acceptable to all involved.

The process works assuming that the borrower has certain income.

As part of this process, the Bank will frequently offer adjusted terms including partial forgiveness of debt, transferring of some of the debt to the end of the loan period. Also the Bank sometimes offers and interest reduction.

There is no downside to this process.

Yes, sometimes the borrower’s application is rejected. However, in our experience this has not happened often.

Triad Law Group has done many mediations and if your are exploring different ways to remain in your home it may well be worth your while to call us to see if – using this process – we can help.

Contact us about affordable mediation options through Triad Law Group.