Washington state foreclosure mediation program.
The state of Washington has implemented a foreclosure mediation program for homeowners that are struggling. The program will be officially known as the Foreclosure Fairness Act of 2011, and is the result of House Bill 1362. While more details of how it works are noted below, in general what mediation will do is ensure that lenders and banks notify borrowers prior to foreclosure that mediation is one solution that can be pursued. This is made available during the process in order to help find a solution.
Foreclosure counseling and mediation is currently offered in several states and even local counties across the United States. Washington is a little newer in the process. The mediation services and programs will in effect help homeowners across the state both understand all of their options to stopping the foreclosure and getting help. In addition to that, the result of the mediation session(s) can ensure people are able to determine the best course of action to take during the process.
Foreclosure mediation process in Washington
Mortgage servicers and lenders will now be required to provide a notice with detailed information to the borrower of 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, and very importantly, the lender will also be required to give the borrower notice of his or her option to pursue the mediation process by using a neutral third party.
The Washington Foreclosure Fairness Act of 2011 will be providing homeowners with a process for foreclosure mediation when a housing counselor or attorney determines that mediation is appropriate action to take in an effort to find a solution. According to the law that is now in place across the state, parties that are involved in the process can attend the meeting either in person, telephone, through an agent or some other method.
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