Foreclosure mediation in Washington

How foreclosure mediation works in Washington, step by step

1. Who qualifies

   Deeds of trust on 1 to 4 unit homes

   Mediation applies to deeds of trust on residential property of up to four units. It does not cover commercial loans, seller-financed sales, a grantor who is not the borrower or a guarantor, or property owned by a company. Heirs who are successors in interest and people awarded the home in a divorce can also be referred.

   RCW 61.24.165(1), (2), (4), (5)

2. Get referred by a counselor or attorney

   After the notice of default, at least 90 days before the sale

   A housing counselor or attorney sends the referral to Commerce. It must be made after a notice of default and no later than 90 days before the sale date in the notice of trustee's sale, or 25 days before the sale in an amended notice recorded after a court stay. Commerce lists a free counselor line, 1-877-894-4663.

   RCW 61.24.163(1), (2), (4)

3. Commerce picks a mediator and the sale pauses

   Within 10 days of the referral

   Commerce notifies everyone and selects a mediator. If you were referred before the notice of sale was recorded, it cannot be recorded until mediation is certified complete. If you were referred after, the sale cannot take place until the trustee gets the mediator's certification.

   RCW 61.24.163(5), (19)

4. Send your documents, then the lender sends its own

   You: 23 days. Lender: 20 days after yours

   You send the mediator and lender a financial worksheet with your income, debts, assets, expenses, two years of tax returns and hardship information. The lender must then send the loan balance, note and deed of trust, proof it owns the note, an itemized arrearage and fees, 12 months of payment history, its net present value inputs, and an explanation of any denial.

   RCW 61.24.163(6)

5. The session and who must attend

   Within 70 days of the referral

   You, the lender or its agent, and the mediator meet in person in the county where the home is, unless you agree otherwise. A person with authority to agree to a resolution may join by phone or video. The mediator may continue the session once; more sessions need everyone's consent. The mediator's fee, up to $400 for a one to three hour session, is split equally.

   RCW 61.24.163(8), (10), (20)

6. If the lender does not mediate in good faith

   Certification within 7 business days

   Bad faith includes not showing up, not providing documents, or sending someone without authority to settle. A certification that the lender failed to act in good faith is a defense to that trustee's sale. If no modification was offered and the certification shows the modified loan's net present value beats foreclosure, you can ask a court to stop the sale.

   RCW 61.24.163(13), (15), (17)

7. If there is no agreement

   After the mediator's certification

   If you and the lender cannot agree, the lender may go ahead with the foreclosure once the mediator's certification is issued. If the mediator finds that you did not act in good faith, the lender can also proceed. Commerce posts a guide to borrower options after mediation.

   RCW 61.24.163(16), (18)

The program in Washington

Common questions in Washington