You got a Washington Notice of Pre-Foreclosure Options: what it means

What this letter is in Washington

What it does and does not mean

• It is not a notice of default and not a sale notice. No foreclosure clock under the Deed of Trust Act has started yet.
• It is a warning that a notice of default can follow if you do nothing.
• It gives you a right to ask for a meeting with your lender, whether or not you use a counselor or attorney.
• At the meeting, the lender must look at whether you can afford a modified or restructured loan and discuss options. Possible results the template lists are a loan modification, a short sale, a deed in lieu, another workout plan, or no agreement.
• It does not promise any outcome. The lender does not have to approve a workout.

The deadlines it starts and how to count them

• The letter says you must respond within 30 days of the date of the letter. Count 30 calendar days from the date printed at the top, not from the day you opened it. The statute treats initial contact as made 3 days after the letter is sent (RCW 61.24.031(1)(d)), but counting from the printed date keeps you safe.
• If you do not respond in 30 days and the lender has made its calls, it may issue a notice of default (RCW 61.24.031(1)(a)).
• If you do respond, no notice of default can be issued until 90 days after the initial contact. That is the 30 days plus 60 more.
• If you want the meeting in person instead of by phone, you must ask in writing within 30 days of the initial contact. An in-person meeting is held in the county where the home is unless you agree otherwise (RCW 61.24.031(1)(f)).
• A person with authority to agree to a resolution must take part in the meeting, in person or by phone or video.

What to do this week

• Write the response date on your calendar: 30 days from the date on the letter.
• Respond in writing to the contact address on the letter. Say you want to meet about the delinquency, give your current phone and email, and name any counselor or attorney who will speak for you. The template suggests certified mail with return receipt. Keep a copy.
• If you want an in-person meeting, say so in the same letter.
• Call the Washington Homeownership Resource Center hotline at 1-877-894-4663 for a free housing counselor. A counselor or attorney can contact the lender for you and attend the meeting (RCW 61.24.031(3)).
• Start gathering what the template says to bring: proof of current and future income, a list of debts, and your last two years of tax returns.
• Read how to stop foreclosure in Washington for every option and its cutoff.

Free help in Washington and scam warnings

• The letter warns that skipping a counselor or attorney may cost you chances such as mediation. Only a counselor or attorney can refer you to mediation later.
• Washington calls foreclosure rescue companies distressed home consultants. Their contract must be in writing and list every fee, and they owe you a duty to act in your interest (RCW 61.34.050, 61.34.060). A free counselor does the same work.
• If a lender skips this letter and the calls, that is an unfair practice under the Consumer Protection Act (RCW 61.24.135(2)). The Washington foreclosure help page lists where to complain.