Washington State Update

Holly Chisa

By Holly Chisa, HPC Advocacy, UTA Washington Lobbyist

The 2012 Washington Legislature made several changes to last year’s mediation laws for non-judicial foreclosure.  These changes were heavily negotiated among financial institutions, advocate attorneys, mediators, trustees, and other, interested parties to try and bring clarity to the program, and to address some problems that came up in 2011.  The changes will impact homes already in the foreclosure process, and how trustees move forward with these properties.

Several changes were made to the timeline.  Most notably, the timeline between the date of the mailing of the NOPFO to the filing of the trustee sale is now 150 days, up from 120.  Mediations cannot be requested prior to the processing of the NOD; previously homeowners could be referred to mediation before an NOD was issued.  A homeowner can now request mediation up to twenty days AFTER the notice of trustees sale has been posted, and trustees cannot move forward with most sales until after they receive documents from the mediator.  (Mediators are still required to provide summary documents seven days after the mediation is completed.)

Changes were also made to the documentation requirements for the homeowner and the financial institution.  There is more flexibility in the documentation needed, and clear timelines when that documentation must be provided to the various parties.

It is hoped that these changes will help bring clarity to the mediation program, and provide effective resolution for the homeowner and the beneficiary.  We will continue to meet with all of the stakeholders throughout the summer and fall to implement the changes, as well as to continue to address issues as they arise within the mediation program.  Each year new challenges are identified, but by working with all the parties prior to the legislative session, we’ve been successful in passing bills that protect homeowners but also ensure that there is a clear, defined process for foreclosures.

There were also several pieces of legislation introduced that would have impacted the trustee directly.  Some perceive that trustees are being inappropriately influenced by financial institutions, and have lost their objectivity in the foreclosure process.  Members of UTA will be meeting with lawmakers throughout the summer to help them understand that, while trustees work with financial institutions, they maintain their autonomy.  Many of you have already talked with me about your work in ensuring that homeowners are given their due process, and have stopped foreclosures and sales when steps are not correctly taken.  Trustees need to share these stories with lawmakers to ensure they know trustees approach their work with integrity.  UTA and I will be contact you to see if you are interested in helping with this message; please contact me directly as well if you would like to participate.

United Trustees Association members continue to proactively work with lawmakers and stakeholders to draft reasonable changes to non-judicial foreclosure laws.  We look forward to a busy summer meeting with lawmakers to educate legislators on the important role the trustees play in ensuring a fair, clear, objective foreclosure process.