A recent article in the New York Times states that Washington State home foreclosures may be delayed in the near future because the legal documents filed with the court may not be proper: See this link regarding Seattle Home Foreclosures. This could affect home foreclosures in Washington state as a bank cannot foreclose on a home unless they can prove they own the original note associated with the mortgage. Because of something called Mortgage Electronic Registration System or MERS many people’s notes have become lost or are hard to find delaying such foreclosures. In Washington state most home foreclosures are don non judicially. This means that banks don’t need to go to a court in order to foreclose on a home if they give the home owner proper notice of the trustee sale and follow the rules. These home foreclosures can be challenged in court by making the bank prove they own the mortgage note. Further the bank may also elect to foreclosure on a home through a judicial foreclosure but this is much less common but is required for property such as a farm.
Trustee sales may also be delayed through the use of chapter 7 or chapter 13 bankruptcies through the use of their automatic stay which stops any creditors from collecting on a debt. The Washington state Foreclosure Fairness Mediation program may also be another option for you if you don’t want to file for bankruptcy but wish to retain your home. Through this program you can be reviewed for a loan modification and speak to somebody in person with a mediator involved to try and resolve your situation. it should be noted that while you are being reviewed for a loan modification through the foreclosure fairness program, you cannot be foreclosed upon so this could buy you more time in your home to make your next move or allow you to save to make up payment you are behind.