- Who sends it
- The Washington Department of Commerce, within 10 days after it gets your counselor's or attorney's referral
- What it starts
- 23 days for you to send your financial worksheet and documents, then a session within 70 days of the referral
- Do this first
- Mark the 23-day date and start the financial worksheet with your counselor today
What this notice is in Washington
Washington's Foreclosure Mediation Program is part of the Foreclosure Fairness Program. You cannot sign up yourself. After you get a notice of default, a housing counselor or attorney decides whether mediation is appropriate and sends a referral notice to you and to Commerce (RCW 61.24.163(1), (4)).
Within 10 days of getting that referral, Commerce must send a notice to you, your lender, the counselor or attorney who referred you, and the trustee, saying the parties have been referred to mediation. It lists the documents each side must send and explains who pays the mediator. Commerce also selects a mediator and tells everyone who it is (RCW 61.24.163(5)).
What it does and does not mean
- It means the foreclosure must wait for mediation. If you were referred before the notice of sale was recorded, the trustee cannot record it until it receives the mediator's certification. If you were referred after, the sale cannot happen until the certification arrives (RCW 61.24.163(19)).
- It does not mean the lender must modify your loan. The goal is a resolution such as reinstatement, a modification, a restructured debt or another workout.
- Both sides must mediate in good faith. Not showing up, not sending documents, or sending someone without authority to settle can count as bad faith (RCW 61.24.163(13)).
- If you do not take part, the mediator can cancel the session and the lender can go ahead (RCW 61.24.163(14)).
The deadlines it starts and how to count them
- You: within 23 days of Commerce's notice, send the mediator and the lender your homeowner financial information worksheet. It covers your income, debts, assets, expenses, two years of tax returns and hardship information (RCW 61.24.163(6)(a)).
- Lender: within 20 days after it gets your documents, it must send you and the mediator the loan balance, the note and deed of trust, proof it owns the note, an itemized list of arrears and fees, payment history, its net present value inputs, and an explanation of any denial (RCW 61.24.163(6)(b)).
- Fee: you and the lender each pay half the mediator's fee within 30 calendar days of receiving Commerce's referral letter, or as the mediator instructs (RCW 61.24.163(20)).
- Session: the mediator must hold it within 70 days of receiving the referral from Commerce, unless both sides agree to extend. You get written notice of the time and place at least 30 days ahead (RCW 61.24.163(8), (9)).
- Certification: within 7 business days after the session, the mediator sends a written certification of what happened. Business days skip weekends and holidays (RCW 61.24.163(15)).
What to do this week
- Write down the date of Commerce's notice and the date 23 days later.
- Fill out the financial worksheet with your counselor or attorney and gather tax returns, pay stubs and a hardship letter.
- Send your documents to both the mediator and the lender in a way you can prove, and keep copies.
- Ask the mediator for the estimated fee and pay your half on time.
- Plan to attend in person. For a home loan, you, the lender or its agent, and the mediator must meet in person, though the lender's decision maker may join by phone or video (RCW 61.24.163(10)).
The Washington foreclosure mediation page walks through the whole program.
After mediation and where to get help
- If no agreement is reached, the lender can go ahead with the foreclosure after the mediator's certification (RCW 61.24.163(16)).
- A certification that the lender did not act in good faith is a defense to that trustee's sale (RCW 61.24.163(17)(a)).
- If no affordable modification was offered and the certification shows a modified loan is worth more to the lender than foreclosure, that is a basis to ask a court to stop the sale (RCW 61.24.163(17)(c)). This takes a lawyer, so call legal aid at 1-800-606-4819.
- Questions about the hotline or a counselor: call 1-877-894-4663, which Commerce lists as free.
The rest of the Washington process
See how foreclosure works in Washington, the timeline, ways to stop it and free help in Washington, or read the national guide to this letter.
Common questions
How long does Washington foreclosure mediation take?
Commerce has 10 days to send its notice, you have 23 days to send documents, the lender has 20 days after that, and the session must be held within 70 days of the referral unless both sides agree to extend (RCW 61.24.163). The mediator then has 7 business days to certify.
What if I miss the 23-day document deadline?
Failing to provide required documents can count as not mediating in good faith (RCW 61.24.163(13)(b)), and a certification that you acted in bad faith lets the lender proceed (RCW 61.24.163(18)). If you are running late, tell the mediator and your counselor right away.
Do all Washington lenders have to mediate?
No. Some federally insured banks and credit unions with few Washington foreclosures are exempt (RCW 61.24.166), and commercial loans and seller-financed sales are not covered (RCW 61.24.165). Your counselor checks this before referring you.
Other Washington letters
- Notice of Pre-Foreclosure OptionsIn Washington, your lender must send this letter before it can issue a notice of default. If you respond within 30 days, you get 60 more days and a meeting with someone who can approve a workout. It is not a foreclosure yet, and it is your earliest chance to slow the process down.
- Notice of DefaultIn Washington, the notice of default is the formal first step of a trustee foreclosure. It lists what you owe to catch up and warns that a notice of sale can follow in as little as 30 days. It also opens your window to be referred to state foreclosure mediation.
- Notice of Trustee's Sale (with Notice of Foreclosure)The Notice of Trustee's Sale sets the date, time and place of the auction. For most homes it says "THIS NOTICE IS THE FINAL STEP BEFORE THE FORECLOSURE SALE OF YOUR HOME." Your copy comes with a Notice of Foreclosure that lists the cure amount and the last day to cure, 11 days before the sale.
- Unlawful detainer (eviction) summons after a trustee's saleIn Washington, the buyer at a trustee's sale is entitled to possession on the 20th day after the sale. If you are still in the home, the buyer must file an unlawful detainer case. The summons gives a return date 7 to 30 days after you are served, and only a court order can remove you.
- Trustee's notice of surplusIf your home sold for more than the loan and sale costs, Washington law makes the trustee deposit the extra with the superior court clerk and mail you notice. The court, not the trustee, pays it out. You file a motion in that court, and junior liens are paid in priority order.