The Foreclosure Fairness Act (HB 1362) was signed into law by Governor Christine Gregoire on April 14, 2011, creating a foreclosure mediation program in Washington State. Mediation will give struggling homeowners the opportunity to meet with their lender to discuss options before losing their home and most valuable asset. This law will truly make a difference for thousands of homeowners in our state. Foreclosure mediation programs have been shown to be extremely effective in allowing families to save their homes. The bill was sponsored by Rep. Tina Orwall (D-Normandy Park) and had overwhelming support in the legislature.
Throughout the housing crisis, homeowners and housing counselors have repeatedly reported that banks and loan servicers do not answer the phone, lose homeowners’ information about loan modifications, and have different staff people from different offices talking to a homeowner. This new law will eliminate the problem of struggling homeowners being unable to get in touch with their lenders as they fight to stay in their homes.
“Approximately 45,000 families will receive notices of foreclosure this year, but we are providing new hope for many of them with a fair process and resources to help them explore every option available and keep their homes whenever possible,” said Rep. Tina Orwall.
Are you facing foreclosure? Unable to get your lender to respond? Want to know your options? Read on…
Washington State has a new law to prevent foreclosures.
As of July 22, 2011 you can now ask for a face-to-face meeting with your lender by requesting foreclosure mediation. To request a meeting with your lender, contact a housing counselor or attorney by calling 1.877.894.HOME (4663).
What is foreclosure mediation?
Foreclosure mediation is a process where a neutral, third-party mediator assists the homeowner and the lender to reach a fair, negotiated agreement.
Why request mediation?
If you have not been able to get in touch with your lender, you can now request a face-to-face meeting to discuss alternatives to foreclosure. During mediation, the lender is required to negotiate with you in good faith.
Who is eligible?
• Homeowners who are in default on their mortgage and have not yet received
the Notice of Trustee’s Sale are eligible
• Homeowners who live in owner-occupied properties
How can I request mediation?
Foreclosure mediation must be requested by a housing counselor or an attorney on behalf of a homeowner. To find a housing counselor, call 1.877.894.HOME (4663).
How much does it cost?
The homeowner and the lender each pay a $200 fee for the mediation. The fee must be paid prior to the mediation.
Share your Story!
The foreclosure mediation law was passed because struggling homeowners shared their stories with lawmakers. Poverty Action is collecting stories from community members like YOU! Are you facing foreclosure? Having trouble with payday lenders? In danger of losing benefits like TANF or Disability Lifeline? Share your story and help lawmakers understand the issues Washingtonians are facing. For more information contact Poverty Action at 1.866.789.7726 or visit the Statewide Poverty Action Network website.
- Foreclosure Fairness Act brochure
- Foreclosure Fairness Act: Read the full text.
- Washington State Department of Commerce Website: For more information about the Foreclosure Fairness Act and/or Mediation Program.
- Washington Homeownership Information: For more information on foreclosure prevention, avoiding foreclosure rescue or loan modification scams and alternatives to foreclosure.
- Washington State Housing Finance Commission: To contact a homeownership counselor – or call 1.877.894.HOME (4663).
- Contact the statewide civil legal aid hotline for legal assistance and referrals by calling 1.800.606.4819.
- Like the Foreclosure Fairness Act Facebook page or follow the FFA Twitter account at @WAStateFFA for information on foreclosure prevention events and updates on the Foreclosure Fairness Act Mediation Program.
- Watch this television public service announcement recorded by Washington Lieutenant Governor Brad Owen.