Michelle Darnell

 
Foreclosure Defense and Mediation

Since 2007 there have been over 600,000 homes foreclosed upon in Washington State.  Most of these were avoidable.  Banks were bailed out while people were kicked out.  Homeowners did not know they had alternatives other than walking away from their properties.

Here at the Stafne Law firm we are passionate about assisting homeowners in avoiding unnecessary foreclosure.   We have a track record of success.  See here for testimonials of homeowners who have been successful in negotiating a loan modification by participating in the Washington Foreclosure Fairness Act program.

In 2011 the Washington State legislature amended the Deed of Trust Act to create a program to help homeowners avoid unnecessary foreclosure.   This program, managed by the Department of Commerce while not perfect, has helped thousands of homeowners avoid foreclosure.  The key to success in the program is having a diligent advocate in your corner.  This is where the Stafne Law Firm comes to play.

Michelle Darnell has be representing borrow in the WA FFA program with great success for several years.  Michelle’s expertise, passion and concern for homeowners is obvious and she will fight for you while offering the compassion and tenacity that every homeowner needs.

An affiliated organization, The Garden Alliance, also offers emotional support that is often needed while dealing with this stressful situation.  We care.

You are not alone in your first step toward help and support is calling us today. Call today for a consultation (360) 403-8700 or fill out the contact us page and we will discuss your options, what to expect and what you your goals are so that we can create the best strategy for you.  

Help is on the way!

Judicial v. Non-Judicial Foreclosure

If you are facing foreclosure in Washington, it’s important to understand some of the basics, including the most common type of foreclosure procedure (judicial v. nonjudicial) used in Washington how much time you have to respond.

Know your rights and protections in the process, and what happens afterwards (for example, whether you’ll be liable for a deficiency judgment).

Below we have outlined some of the most important features of Washington foreclosure law. Keep in mind that this is just a summary; we’ve included statute citations so you can get more details from the laws themselves. And be sure to check out Nolo’s extensive Foreclosure section, where you can find information about all aspects of foreclosure, definitions of foreclosure terms (like redemption and reinstatement), and options to avoid foreclosure.

Topic	State Rule
Most common type of foreclosure process	Nonjudicial under power of sale in deed of trust
Time to respond	Mortgage holder must contact homeowner (or satisfy the requirements for attempting to contact the homeowner) at least 30 days before issuing a notice of default for owner-occupied residential properties to try to reach a resolution other than foreclosure. If the homeowner responds to the contract, the notice of default may not be issued for an additional 60 days. A notice of default must be served on homeowner 30 days before notice of sale is served. The notice of default must be served by both first-class mail and by registered or certified mail, return receipt requested, and by either posting the notice on the premises in a prominent place or by personal service on homeowner. Foreclosing party must serve notice of sale in the same manner as the notice of default at least 90 days before sale date. No sale may occur within 190 days after the first default.
Reinstatement of loan before sale	Available up to 11 days before sale
Redemption after sale	Not available for nonjudicial sales; eight months or one year for judicial sales, depending on circumstances
Special protections for foreclosures involving high-cost mortgages	None
Special state protections for service members	Wash. Rev. Code § 4.16.220
Deficiency judgments	Not allowed for nonjudicial sales; available for judicial sales
Cash exempted in bankruptcy	About $12,725 for one person, $25,450 for a married couple under federal bankruptcy exemptions. $1,500 ($3,000 if married filing jointly) under state bankruptcy exemptions.
Notice to leave after house is sold	New owner entitled to possession 20 days after purchase and may file eviction (unlawful detainer) lawsuit. Summary proceedings may be available.
Foreclosure statutes	Wash. Rev. Code §§ 61.24.020 to 61.24.140

The right of redemption is the right of a homeowner in foreclosure to “redeem” the mortgage and keep the house by paying a certain sum of money within a certain period of time. Depending on the laws of their state, homeowners in foreclosure may have two separate rights of redemption: a pre-foreclosure equitable right of redemption and a post-foreclosure statutory right of redemption.

The Equitable Right of Redemption

All homeowners, no matter what state they reside in, have the right to redeem their mortgages and save their homes from foreclosure by paying off the entire mortgage balance, plus fees and costs, prior to the foreclosure sale. Although most homeowners in foreclosure will find it difficult to come up with all the cash required to redeem in a lump sum, mortgages may also be redeemed by refinancing the mortgage debt or selling the home to a purchaser.

The Statutory Right of Redemption

About half of all states have laws that give homeowners the right to redeem their mortgages for a period of time after the foreclosure sale, typically by paying the foreclosure sale price, plus interest and other allowable fees, to the foreclosure sale purchaser. If a home sells at a foreclosure auction for a price far below its fair market value, the homeowner may be able to recoup the equity by redeeming the property for the foreclosure sale price, selling the home to a buyer for the fair market value, and keeping the difference.

State Laws Regarding the Right of Redemption

Each state has its own law governing a homeowner’s right of redemption. Refer to the list below to find out whether you have the right to redeem your mortgage after the foreclosure sale and what restrictions may apply.

Washington State Non Judicial

Not after nonjudicial foreclosure. Yes, within eight months after judicial foreclosure sale if foreclosing lender waives right to deficiency judgment; if foreclosing lender fails to waive right to deficiency judgment, redemption period is one year.

In most states with right of redemption laws, the new owner isn’t allowed to take possession of the property until the redemption period ends. This means you can live in the house until that time expires, without needing to make payments. If you damage the home during the redemption period, the new owner can take legal action to recoup payment for the damages, so talk to an attorney to make sure you understand your rights in your state.

MODIFICATION ASSISTANCE

• WA FFA MEDIATION REFERRALS (After the homeowner has received a Notice of Default)
• WA FFA MEDIATION REPRESENTATION : We have three options tailored to fit the homeowner’s circumstances
• HOURLY CONSULTATION:  
• LITIGATION:  Because of the emotional and financial expense of litigation and the unpredictable nature of litigation, we take only a few of these cases where appropriate.
• GROUP CLASSES: We will provide group learning opportunities.

If you are facing foreclosure, you can resolve the problem by negotiating a loan modification. Many banks are resistant to doing this. We have to leverage your position. One of the ways we do this is by pre-qualifying you for your modification. If you actually qualify, we will know and we will fight to get it for you!

http://www.nolo.com/legal-encyclopedia/alternatives-foreclosure

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If you are behind on your mortgage payments, already defaulted on your loan, or facing foreclosure, you may be able to avoid foreclosure. Sometimes you can keep your home by working with your lender, figuring out ways to reduce your mortgage payments, or qualifying for a government sponsored foreclosure assistance program. If walking away from your home is the best financial decision for you, you have other options such as short sale, deed in lieu of foreclosure, or just letting the foreclosure happen.

Before you decide what to do, make sure you understand all of your options and their consequences.