As I've discussed before on this blog (here), Washington State recently enacted the Foreclosure Fairness Act, which went into effect on July 22, 2011. The new law was designed to assist homeowners facing possible foreclosure, by providing them greater leverage in dealing with their banks. The main points of the new law were to allow an opportunity for the homeowner to request a meeting to discuss options with the bank, once the homeowner fell behind on their mortgage. The meeting would conceivably allow the homeowner and the bank to discuss options or workout plans (e.g. short sale, deed in lieu, or perhaps a loan modification).
Beyond this initial stage, if no resolution was reached, the homeowner could request a mediation via a HUD approved housing counselor or through an attorney. If the request for mediation was made, it would force the banks to mediate in good faith in the presence of a third party mediator to see if there is a viable option to avoid a foreclosure.
Well the new law sounds ideal; however, as expressed on King 5 News - Jesse Jones (who I think is awesome by the way) it appears the new law is having some growing pains. If you haven't seen the segment, check out the video: