Changes Made To the Foreclosure Fairness Act in Washington State

Holly Chisa

UTA's Washington Lobbyist, Holly Chisa, HPC Advocacy, provides a summary of changes to the Foreclosure Fairness Act in Washington State. HB 2614 was passed by the Legislature March 6 and is expected to be signed into law by the Governor.

Meet and Confer

• May now occur by telephone instead of in person
  
  
• In person meeting must be requested by the homeowner, and meeting must take place in the County where the homeowner chooses
  
  
• A homeowner may not be referred to mediation during the meet and confer period

Mediation

• A homeowner's representative may request mediation anytime after the NOD has been filed, but no later than 20 days after the NOTS has been recorded
  
  
• The timeline is expanded
  
  
  • 23 days from the date of notification from the Dept of Commerce, documents must be sent to the financial institution from the homeowner/homeowner's representative
    
    
  • 23 days after the documents are received from the homeowner, the beneficiary must send documents
    
    
  • 70 days after receiving the referral to mediation from the Dept of Commerce, the mediator must schedule mediation

Rescission

Up to 11 days after the trustee's sale, the trustee, beneficiary, or agent for the beneficiary may declare the sale void for the following reasons:

• the trustee, beneficiary, or servicer for the beneficiary assert there was an error with the trustee foreclosure sale process, including but not limited to, an erroneous opening bid amount made by or on behalf of the foreclosing beneficiary at the trustee's sale;
  
  
• prior to the sale, there was an agreement for a loan modification, forbearance plan, or other loss mitigation agreement to postpone or discontinue the trustee's sale; or
  
  
• the beneficiary or servicer accepted funds that fully reinstated or satisfied the loan even if they had no legal duty to do so.

• No later than 15 days following the voided trustee's sale, the trustee is to send a notice, as proscribed by statute, to all parties entitled to the notice.
  
  
• If the rescission is based on an erroneous bid amount or an agreement to postpone the sale, the trustee may set a new sale date at least 45 days following the mailing of the notice of rescission of trustee's sale.
  

The trustee is to comply with the requirements for holding a trustee's sale at least 30 days before the new sale date and publish the Notice of Trustee's Sale as required by statute.