Home > Blogs > Mike Karsten > Mike Karsten's (mikekarsten) Blog

Washington State New Deed of Trust Foreclosure requirements Effective: July 26, 2009

By Mike Karsten

Real Estate Agent with Mountain View Properties

May 25, 2009 09:49 AM

For any Agent workingin the Pre foreclosure field of Short Sales, Below are some important Changes that you must be aware of:

http://www.leg.wa.gov/pub/BillInfo/2009-10/Pdf/Bill%20Reports/House/5810.E%20HBA%20JUDI%2009.pdf

1) The sale may not take place less than 190 days from the date of default. Any person other than the trustee may bid at the sale. After sale of the property there is no right of redemption and no right to a deficiency judgment. The proceeds of the foreclosure sale are distributed first to the expenses of sale and the obligation secured by the deed of trust, and the surplus is deposited with the clerk of the court. Any interests or liens on the real property that are eliminated by the sale attached to the surplus proceeds.

2) A 30-day extension is made to the current timeline for foreclosure. Thirty days must pass before the notice of default can be filed. The notice of default must include a declaration from the beneficiary that it contacted the borrower or used due diligence in attempting to do so. Actions by the lender to contact the borrower and the times at which these actions are to be taken and what constitutes due diligence are specified in detail.

3) Tenants living in foreclosed property must be given 60 days' written notice by the new owner before the tenants are removed from the property.

Effective: July 26, 2009

RealMitigation.com

We are Your Short Sale Experts

20825 SR 410 E, ste 316

Bonney Lake, WA 98391

253-299-6733

Re-Blog

Comments(7)

Comment

Show All Comments

Sort:

Sandra White

John L Scott Real Estate - Port Townsend, WA

Experienced Residential Resale Broker

This is very good and useful information. I look forward to the day we won't have the short sales, but in the meantime, it is a bit complicated. Thanks for the post.

May 25, 2009 10:02 AM

Rene Fabre

ARFCO Media - Renton, WA

Practicing Philosophical Eclectic of the Arts

Thanks Mike... I new this was coming July is right around the corner!

thx...

Rene'

May 25, 2009 11:45 AM

krishna kashyap av

home - Syringa, ID

Thanks for the post

Idaho Real Estate

Jul 06, 2009 02:35 AM

Rick Watson

My Loan Nightmare - Columbus, OH

Thanks for the info...I'm reading up on this....

www.Myloannightmare.com

Savemyhome@myloannightmare.com

(to link sites, send us an e-mail)

Jul 18, 2009 06:33 AM

Thomas McCombs

Century 21 HomeStar - Akron, OH

Thank you for the timeline info. Going further, do you know what the timeline is for physical possession after the sale? How much money does the successful bidder need to come up with at the sale, how long does he have to get the rest of the funds to the trustee, and how long does the resident have before he gets a notice to vacate, and how long after that can he stay before the sherrif puts his stuff on the street? Are there any other potential delays that might arise before the buyer gets actual control of the property? And is there a lot of variation in these timelines from state to state or from county to county within a state? As a potential trust deed investor these little details can be very important.

Thomas McCombs, Charles Real Estate, Akron Ohio

Aug 29, 2009 01:14 AM

Mike Karsten

Mountain View Properties - Auburn, WA

Thomas, there are various rules and time lines from State to State. In Washington State you would have to pay cash at the auction and show you have it in the form of cashiers checks prior to bidding. Most show up with multiple cashiers checks. The current law gives a home owner 20 days to move after the auction sale, at that point if they are still in the property, you would have to evict them. If the there is a tenant in the property, Washington State law has been changed to allow them 60 days to vacate, However a new federal law supersedes it. "The Helping Families Save Their Homes Act of 2009" This is big in no matter what state you live in. Basically you have at least 90 days before you can evict and you might have to honor their lease. Bottom line is you could become a landlord even if you don't want to. There could be a whole lot of liability associated with becoming a landlord. Mold, Lead Paint, slip and fall and?

Aug 29, 2009 09:19 AM

In Washington State the lender can either foreclose on a DOT where they cannot pursue a deficiency judgment or they can choose to foreclose by means of a Judicial Foreclosure. In most cases they will choose to foreclose on the Deed of Trust. My opinion is there is a danger of a deficiency judgment if the lender sues or chooses the Judicial Foreclosure.

Sep 13, 2009 07:56 AM

Comments(7)

Mike Karsten

Real Estate Resources