The state of Washington has implemented a program that helps homeowners who are struggling with foreclosure. This program is called the Foreclosure Fairness Act of 2011, and it comes from House Bill 1362. In general, mediation will notify borrowers that they can pursue mediation with their lender or bank before foreclosure. This is provided during the process to help find a solution.
There are services that offer help and mediation for those who are facing foreclosure in several states across the United States. Washington is in the process of becoming a state. The mediation services and programs will help homeowners across the state to understand their options to stopping the foreclosure and getting help. The mediation sessions can help people figure out the best way to proceed.
Foreclosure mediation process in Washington
Mortgage servicers and lenders will now be required to provide a notice to the borrower with detailed information about how much money is needed, including fees, to get back on track with their payments and to reinstate the deed of trust before recording the notice of foreclosure sale. In addition to this, it is also important for the lender to inform the borrower of their option to mediate the process using a neutral third party.
The Washington Foreclosure Fairness Act of 2011 will create a process whereby homeowners can mediate with their lender in order to find a solution to their foreclosure, if a housing counselor or attorney determine that mediation is appropriate action to take. According to the law, parties can attend the meeting in person, by telephone, or through an agent.