New Washington State Foreclosure Law: The Foreclosure Fairness Act

The New Washington Foreclosure Fairness Act Equals More Time, More Counseling, and Mediation to Distressed Homeowners that might be facing Foreclosure.

As of July 2011 there will be a new law on the books in Washington State to assist homeowners that might be facing foreclosure. The Foreclosure Fairness Act was signed off by Governor Gregoire and will go into effect in July 2011. As shown by the legislative history of the bill (HB 1362) and after a direct reading of the bill it is clear the Foreclosure Fairness Act was enacted to curb the current rise in foreclosure rates as well as rising unemployment, job loss and higher adjustable loan payments that Washington homeowners are facing.

Under the new law, Washington homeowners will be given a greater opportunity to save their homes from foreclosure. However, as a homeowner facing a potential foreclosure, you still need to take appropriate and quick steps to ensure that you are afforded the new rights under the law. The new law requires that a lender send the homeowner an "initial letter" that provides a 30 day response deadline. If you DO NOT respond to the "initial letter" you will likely be given a notice of default and the foreclosure process may move forward. However, if you DO respond to the "initial letter" within the 30 days you will be given an additional 60 days to conduct a "meet and confer" with your lender before a notice of default may be issued. The "meet and confer" period is also an opportunity for the homeowner to gain additional time and obtain either a "Housing Counselor" or an attorney to assist them in the process.

Under the Act, a "Housing Counselor" is essentially someone who can assist in representing the homeowner or borrower during the "meet and confer" with the lender. The Housing Counselor must be specifically approved by U.S. HUD or WA Housing Finance Commission. If approved, the Housing Counselor can act as the borrowers representative, just like an attorney, and request a meeting with the lender to see if potential resolution to avoid foreclosure can be reached. Potential resolutions may include a loan modification, an agreement to short sale the property, a deed in lieu of foreclosure, or some other workout plan.

But perhaps the most interesting aspect to the new law is the opportunity to request mediation with the lender. At any time after receiving the "initial letter" and prior to a recording of the "notice of trustee's sale" a housing counselor or attorney may request a mediation with the lender or bank, through the Washington Department of Commerce. The mediation process provides and opportunity to have a third party mediator review the potential resolution measures available to see if the borrower and lender can avoid the foreclosure process. Though mediation is generally a voluntary and non-binding process, it is a little more forceful under the Act as it is can be mandated and is required that both parties operate in good faith. Furthermore, the Act also provides for a Per Se violation of the Consumer Protection Act RCW 19.86 should the lender or any party fail operate in good faith.

This new law should considerably change the landscape of the foreclosure process within Washington State.

The Leukemia Lymphoma Society's South Sound (WA) Light the Night Walk

For the past two years I have been a committee member of the Leukemia Lymphoma Society's South Sound Light the Night Walk. The LLS Light The Night Walk is an evening walk and fundraising event that supports the fight against blood cancers. The Walks take place all across the nation and offers an opportunity to bring hope to thousands of people battling blood cancers and to commemorate loved ones lost. The South Sound Walk takes place along Ruston Way in Tacoma.

I got involved with the LLS Light the Night Walk committee after having lost my Mother to cancer in 2009. For many years, my Mother and her friends would head on down to Ruston Way in Tacoma each year to take part in the South Sound Walk. Each year since, we carry on that tradition in walking for Team Genie's Journey. Over the past two years, Team Genie's Journey has raised over $6,000 to the fight against blood cancers and has been in the Top Ten for fundraising teams.

Rain or shine, the South Sound Light the Night Walk is an amazing event. Each walker carries a special balloon that lights up the night sky. The South Sound event is extra special because it takes place along Ruston Way in Tacoma, which has the backdrop of Mt. Rainier and Commencement Bay. Ruston Way also hosts numerous restaurants that sit along the waterfront. So it is a great opportunity to meet up with friends, grab some drinks and food, and help support a great cause.

This year we are looking for sponsors to help support the event or offer in-kind donations. If you would like to learn more or know of a company or organization that would like to get involved with the event, please contact me. The event is a great opportunity for team-building amongst employees as well as highlight public recognition of your company's sponsorship.

Some Things to Consider Before Purchasing a Condominium

As a potential buyer of a condo, you need to know more than just how much your dues are going to cost before purchasing. Don't get me wrong, dues are important and you should know what the dues cover (maintenance, utilities, etc.). However, there is a lot more to condos than just the dues (i.e. the association itself – how it operates, rental caps, pet restrictions, remodeling and construction restrictions, exterior maintenance requirements, insurance coverage, etc.).

As a condo owner myself, I know that when it comes to owning a condo you’re essentially buying into a community organization – which sort of has its own micro-government, and yes, politics. This does not mean that you will lose your own property and privacy rights, but there are also those rights of your neighbors that you need to consider. Thus, you need to know how the community operates and you need to be able to work within that community so that the collective whole benefits together.

Probably most importantly, you will want to familiarize yourself with the condominium declaration or the codes, covenants, and restrictions (CCRs). This is a governing document for the condominium and will provide you with a lot of information in regards to operations and potential restrictions. This document should be recorded with the county recorder or auditor’s office and thus will appear on your title. It is very important to get a copy of this document and read through it. For instance, if you plan to rent your condo in the future, you will want to know if there is a rental cap or other similar restriction in place. The CCRs will have this information.

In addition to the CCRs you will want to know about insurance coverage and the budget for the condo association. You do not want to end up in a situation where the association is under budgeted or you do not have proper insurance coverage. You should be able to obtain this information from the association president or other board members. Since you’re asking about these things, it would be wise to simply chat with some of the board members and your potential new neighbors. They might have some additional insight about the association and the building… not to mention you will be seeing these people from time to time – meetings, hallways, elevators, and just out and about.

Additional great resources regarding condominiums can be found at two other law blogs that I follow: Condominium Law Group, PLLC and their Condo Law Blog and the attorneys over at Barker Martin. Both of these firms and their blogs focus primarily on condominiums and should be highly valuable to your research or help with your current association.

For Washington State statutory laws regarding condominiums check out RCW 64.32 (Condos before July 1, 1990) or RCW 64.34 (Condos after July 1, 1990).