Foreclosure Timeline in Washington State

Based on some articles and comments that I have read, it seems that there are a lot of misconceptions about how the foreclosure timeline works. Any time we’re talking about foreclosures it’s important that we understand exactly what the various terms mean, so let’s take a moment to look at the foreclosure timeline in Washington State.

Minimum Foreclosure Timeline in Washington State

To start things off, here’s a visual (click to enlarge):

Minimum Foreclosure Timeline in Washington State

  • Day 0 – Borrower misses first payment
  • Day 60 – Borrower receives Notice of Default (not public record in WA)
  • Day 90 – Borrower receives Notice of Trustee Sale (public record in WA)
  • Day 210 – Trustee Sale: Home is auctioned on the courthouse steps
  • Day 230 – Borrower must vacate the home
  • Day 237 – Bank begins the “trash out” and clean up process
  • Day 251 – Bank lists the home on the MLS
  • Day 281+ – Bank sells home

Foreclosure Timeline Terminology

“Foreclosure”

Technically a home has not actually been foreclosed until Day 210 in the process above, but the word “foreclosure” is often used broadly to describe any home at some point in the process between the Notice of Default at Day 60 and whenever the bank sells the home. On Seattle Bubble when we provide stats on the number of foreclosures that are happening in the Seattle metro area we’re referring to homes that have reached the Notice of Trustee Sale stage.

“REO” / “Bank Owned”

Any home that has been sold back to the bank at the courthouse auction (Day 210) and not yet sold to a new buyer is bank owned, also known as real estate owned (REO).

“Shadow Inventory”

In its broadest sense, the term “shadow inventory” can mean any home where the borrower is not current on the loan, but the home is not yet listed on the market for sale. Note that when it is used this broadly, many homes that are considered to be shadow inventory will never end up as normal inventory due to the borrower getting current on their loan or working out a loan modification plan with the bank that holds the mortgage.

It is also worth noting that even in the fastest scenario outlined above, all foreclosed homes that at least get to the notice of trustee sale stage will pass through a period of at least 161 days as “shadow inventory,” even if they are moving along the process at a normal rate. In other words, about five months worth of homes in the foreclosure pipeline would be considered “shadow inventory” at any given time.

Based on the latest Trustee Deed stats for King County that’s a minimum of 1,724 homes in recent months. That sounds like a lot of shadow inventory compared to the ~5,000 homes on the market right now, but it just represents the normal process playing out. The vast majority of so-called “shadow inventory” is made up of homes just moving through the normal foreclosure timeline, not some massive store of homes sitting in some unsold cache, waiting to flood the market any day now.

Ways to Extend and Delay the Foreclosure Timeline

Note that what I have described above is the minimum foreclosure timeline. In Washington state, there are a number of ways to drag it out (some ethical, some not), should a borrower be so inclined.

Notice of Pre-Foreclosure Options

Thirty days before the official Notice of Default, the lender must send the borrower a letter detailing their pre-foreclosure options, as described in RCW 61.24.031. If the borrower responds to the letter asking for a meeting with a representative of the lender, an additional sixty days are added to the process.

The HAMPster Wheel

Some borrowers have taken to abusing the federal government’s Home Affordable Modification Program (HAMP) to drag out the foreclosure process by months or even years. The “HAMPster Wheel” name for this “game” comes from a lengthy thread on the LoanSafe forums in which various borrowers share their tactics for living for free in their mortgaged home for as long as possible.

Filing Bankruptcy

Filing bankruptcy any point before the actual Trustee Sale will delay or even cancel the process, pending the outcome of the bankruptcy. Chapter 13 bankruptcy could cancel the foreclosure completely, while Chapter 7 will generally just delay the process by about 60 days.

Filing a Motion to Restrain Sale

Up until five days before the courthouse steps foreclosure auction, the homeowner may file a motion with the court to restrain the sale. If you have no legal grounds to restrain the sale this delay tactic will not buy you much time, but if there is a valid legal argument (e.g. predatory lending, illegal foreclosure process, MERS issues etc.), the court may approve a restraint of the sale.

Forcing a Sheriff’s Eviction

As early as 20 days after the Trustee Sale, the bank can take possession of the home. However, if the borrower decides not to move out willingly, they can force the bank to evict them. The sheriff’s eviction process can delay the final move out of the house by about two weeks.

[Update: Some corrections and additions were made to this post.]


About The Tim

Tim Ellis is the founder of Seattle Bubble. His background in engineering and computer / internet technology, a fondness of data-based analysis of problems, and an addiction to spreadsheets all influence his perspective on the Seattle-area real estate market.

57 comments:

  1. 1
    Scott Weitz says:

    Tim,

    Love the site…a few additional items.

    1) 120 period now for NOTS to Trustee Sale (rather than 90) for primary residence sales…trustees usually error on the side of caution

    2) Ch. 7 will also delay foreclosure until 1) case is closed; 2) relief from stay is granted…it will generally add at least 60 days

    3) In addition to the meeting request you discussed, The Foreclosure Fairness Act is the process you want to take advantage of to delay the sale/ discuss options….the time to take advantage of this is between receipt of Notice of Default, and 20 days post FILING of the NOTS

    4) Filing a restraint of sale can also stop the sale, but grounds are needed (predatory lending, inappropriate foreclosure process, etc.) for court to approve the restraint

  2. 2
    Erik says:

    I wish you would have posted this a couple years ago so I could have gotten on the HAMPster wheel. Ray Pepper said they would have given me $20k to leave plus I would have gotten years of free mortgage. I’ll know for the future atleast. Next time I will ride on the backs of sweaty tax payers until the end.

  3. 3
    Erik says:

    By the way…. excellent post Tim. This may be one of your finest. I really like the posts I can learn from the best.

    Scotsman thinks interest rates will go down because the economy is struggling when they raised rates. Seems reasonable to me. If rates go down to 3.5%, i think year over year inventory will be lower this year and housing prices will go up. This next summer could easily be high prices and low inventory and make it possibly better than last summer to sell. Rates are inching down every week. I think Scotsman right. It makes sense.

    http://www.bankrate.com/

  4. 4
    doug says:

    You can bet that all the people who bought houses in the last few years will be falling quickly into foreclosure as the Boeing layoffs start to really speed up, also the Microsoft management failure will lead to a break up that will add to the unemployment lines and Amazon will prove to be the biggest fraud of all as it falls into bankruptcy and oblivion.

    all in all these next 6 months will be the last opportunity to sell and unfortunately move out of Seattle along with the mass exodus of people. The question is where will all these people who have flooded the west coast go?

  5. 5
    ray pepper says:

    and don’t forget this guy Howard Bonzo..I think that’s his name! I’m sure he will suck up some dough, hold your hand, and educate you on the hamster wheel: http://myownbailout.com/

    ………….or…………….the astute underwater homeowner can just go to utube and watch the SURPLUS of stories of what other people did!…Good Luck and please don’t be the last one holding the bag!

  6. 6
    Erik says:

    RE: doug @ 4
    Boeing will most likely launch the 777x by the end of the year. They have already sold them, but they didn’t launch the program. When they launch the 777x program, there will be a lot of jobs created at Boeing and there won’t be the massive layoffs you speak of. Boeing always hires a bunch of people and then trims the fat, meaning they layoff the people that aren’t very effective or their manager doesn’t like them for whatever reason. The big question is where will the 777x be built? You are right, the seattle area will have problems if they don’t build it in Washington state. I don’t know, but to me it sounds like they don’t want to build the 777x in Washington state. I think Jim Albaugh kept Boeing in Washington state. He is gone now and the rest of the leadership wants out of Washington State. Leadership says things like “Embrace moving out of the area as an opportunity to advance your career.” Seems to me there is a good chance the 777x won’t be built here, but who knows.

    I think getting rid of Microsofts CEO, Steve Ballmer will initiate new projects because the new CEO will want to make a big change. Seattle is an innovative area and someone needs to invent something good or the Seattle area could take a dump. Either way, I’m selling and renting for a while. This whole recovery is sketchy.

  7. 7
    The Tim says:

    RE: Scott Weitz @ 1 – Thanks Scott. I’ve made some additions and corrections to the post.

  8. 8
    Blurtman says:

    Hi Ardell,

    I am over the limit on the other section, so thought I’d use this section to reply.

    Rule of Investing #2001.3.e(c): Never take investment advice from some guy named Blurtman on a RE blog. ;>)

    Your strategy of a mixed portfolio of corporates sounds fairly common for these days, and I am sure you are utilizing a trusted investment advisor on what is really a personal decision. Sounds like you are getting a nice return and can liquidate at a profit.

    The minor point I was trying to bring up about UST’s is that if you want to park some money in a presumably risk-free investment, UST’s allow you to lock in a guaranteed nominal return. And if you intend to hold to maturity, you know where you stand with certainty, on a nominal basis.

    Further, if fears about a USG default or sudden taper cause the 10 year rate to “spike,” and these fears turn out to be unrealized, you might be able to pick up 10 years that will be priced below par once things settle back down for a few years, and so you could always exit without taking a loss, and still have engineered a risk-free savings account that returns 3%, nominally. And this is based upon a lot of assumptions, and so you know what that could mean.

    Wishing you, the best of good buys: https://www.youtube.com/watch?v=85ieS0OV3gE

  9. 9

    […] understand why this is 100% non-news, let’s look again at the foreclosure timeline I posted […]

  10. 10
    kdogg says:

    I bought a REO from Fannie Mae. I had a question about the price that is recorded for the Trustee Sale. Is the price recorded how much was outstanding on the mortgage or deed of trust? We ended up paying less than this price, so I’m assuming the difference is the bank’s loss?

  11. 11
    Lilypad says:

    We are renting a unit that’s in the foreclosure process and we’ve been here 18 months now. Six months ago, we received notice that the bank was supposedly proceeding with the foreclosure. We haven’t heard a peep from the owner’s bank since then. Our landlord (HOA representative who is also a real estate agent) thinks it will be six more months before the bank actually takes back the unit. Meanwhile, the owner hasn’t paid the mortgage in four years. I don’t know how long he moved out before we moved in, but that’s quite a lot of free “rent” he missed out on, if he were so inclined. Our tenancy here has paid back what he owed the HOA in dues, and has kept the unit maintained. That’s a win/win for the HOA and for us, as the rent we’re paying is considerably less than market rate. The down side? Living with someone’s nasty old carpet and gross tile counter tops, etc. Clearly, the unit was not being properly cared for before we got here.

  12. 12
    Macro Investor says:

    As I posted on the “vampire” REO thread, another form of shadow inventory is owners who are past due (years?), but the bank refuses to even start foreclosure. The bank does this to avoid taking the loss, which makes their balance sheet look better than it really is.

    This is the source of all the scare stories about shadow inventory, ready to come out of hiding and tank the market. We don’t know how big this inventory is, because no notices have been filed. It could be big, or it could be insignificant. But the fact that banks are hiding their losses, suggests it is big and scary. Otherwise, why would they need to hide it :)

  13. 13
    Macro Investor says:

    By Erik @ 3:

    Rates are inching down every week.

    For the past 4 weeks that is true. But over the past year, SO FAR this is just a pause in the up trend.

    I would agree that rates will stay low for many years. But low can still mean a few percentage points higher than today. This is like the 500 year flood of low rates.

    http://stockcharts.com/h-sc/ui?&p=D&yr=1&mn=2&dy=0&id=p58789997302&s=$ust10y

  14. 14
    The Tim says:

    By Macro Investor @ 12:

    As I posted on the “vampire” REO thread, another form of shadow inventory is owners who are past due (years?), but the bank refuses to even start foreclosure.

    I don’t see how that is “another form.” It falls within the period marked in the timeline above between days 0 and 60, when the borrower is in default but the foreclosure process has not begun. I have explicitly marked that as part of the definition of “shadow inventory.”

    Yes, sometimes the process takes much longer than 60 days for various reasons, but I have yet to see any documented evidence of massive numbers of intentionally-delayed foreclosures. If you have a link that provides such evidence (not anecdotes), please share it. Thanks.

  15. 15
    Saulac says:

    By The Tim @ 14:

    Yes, sometimes the process takes much longer than 60 days for various reasons, but I have yet to see any documented evidence of massive numbers of intentionally-delayed foreclosures. If you have a link that provides such evidence (not anecdotes), please share it. Thanks.

    Here is a figure for “delayed foreclosures”: 1.33 mil. as of 10/13 according to one source.
    http://www.mortgagenewsdaily.com/10232013_lps_mortgage_monitor.asp

    I do not know enough to quantitate if the figure is “massive” or not.
    I do not know if this is caused by “intentionally-delay foreclosures”, or not. But I agree with the consensus that banks would not flood the market with REOs again. Given that it has been proven on this blog that “foreclosures are proceeding in a normal, orderly fashtion” (once the foreclosure process has started), it seems “intentional-delay” starting (emphasized) the forceclosure process is something banks could employ.

  16. 16
    Marcel says:

    I am wondering if anyone can tell me which will keep me in my house longer, letting my house get foreclosed on or putting it up for a short-sale? I have been working with the bank on trying to do a loan remodification and have not made a payment in eight months. My realtor is pressuring me to start the short-sale process but I don’t want to jump the gun. Any advice? I’m obviously new at this and found this site to be extremely informative. Thank you.

  17. 17
    Corndogs says:

    RE: Marcel @ 16 – Booooooo! pay your bills. You are a part of what’s wrong with this county!

  18. 18
    Blurtman says:

    RE: Marcel @ 16 – My suggestion would be to contact the lawyers representing Tishman Speyer and Blackrock Reatly, who defaulted on billions of RE loans and suffered no downgrades in their credit ratings.

    On Jan. 8, the owners defaulted on $4.4 billion in loans ($3 billion in senior mortgages and $1.4 billion in secondary loans). They had also raised $1.9 billion in equity. The problem was that the latest appraisal put the value of the complexes at about $1.9 billion.

    http://www.nytimes.com/2010/01/26/nyregion/26stuy.html?pagewanted=all&_r=0

  19. 19
    Marcel says:

    I do pay my bills but when you lose your job and have medical bills it’s hard sometimes. The bank sent back the partial payments I sent them as well.

    . By Corndogs @ 17:

    RE: Marcel @ 16 – Booooooo! pay your bills. You are a part of what’s wrong with this county!

  20. 20
    Marcel says:

    Thank you for your input.RE: Blurtman @ 18

  21. 21
    Erik says:

    RE: Marcel @ 19
    Best move I ever made was dumping my house on taxpayers. I highly recommend it.

  22. 22
    ARDELL says:

    RE: Marcel @ 16

    Do you have a Trustee Sale date?

  23. 23
    Corndogs says:

    RE: Erik @ 21 – “Best move I ever made was dumping my house on taxpayers. I highly recommend it.”

    …and now you’re unemployed because that douchebag karma factor came back around to bite you in the a$$ as I warned you it would… Marcel is also suffering from douchebag karma syndrome… people can see it in your eyes, in the way you answer questions when asked, in your workmanship… it just seems right to sack people like you guys…. Life is a big flour sifter and everyone falls out where they belong, you two turds need to repent before you do more damage to yourselves.

  24. 24

    RE: Marcel @ 16 – Here’s a piece I did just over a year ago on reasons to do a short sale:

    http://www.trulia.com/blog/kary_l_krismer/2012/08/do_you_want_to_try_a_short_sale_or_not

    At the bottom of that link is another link to a piece on the reasons to not do a short sale.

    One thing you’ll notice is that doing a short sale may either increase or decrease the time you get to stay in the house before foreclosure. I probably need to review those pieces for updating, but if anything I’d suspect that it’s probably slightly less likely that the bank will delay a foreclosure now than back then, but I don’t have any data on that. What I do have data on is that fewer short sales are being approved–at least in King County for single family residential.

    Finally, I would highly recommend consulting an actively practicing attorney about your situation, preferably one who actually understands the tax consequences of both foreclosure and short sale. Looking into bankruptcy options (and timing) would also be a good idea. If bankruptcy in inevitable then being able to stretch a few more months of possession out of your house might have a major impact on the preferred timing of the bankruptcy. I suspect this will require consulting more than one attorney.

  25. 25

    One more thing you should read:

    http://www.trulia.com/blog/kary_l_krismer/2013/12/mortgage_debt_relief_act_falsehoods_update

    The Mortgage Debt Relief Act will be expiring in four more days, and obviously you won’t likely be completing a short sale before then. It’s also rather unlikely that the current Congress will extend that again. That does not mean though that if they don’t that you will have a tax consequence from a short sale, or that if they do extend it that you won’t have a tax consequence. The tax impact of a foreclosure might also be affected.

    Unfortunately every real estate attorney might not be able to properly advise you on the tax consequences–but some who can’t may try.

  26. 26
    Erik says:

    RE: Corndogs @ 23
    Yeah, it is probably having that attitude is why I am not employed. I agree. I have done things that weren’t by the rules and you would disagree with them. At the end of the day, I have $128k from my remodel, I get full benefit from unemployment, and I get my MSME from UW after I take one more class. I would rather have a Master of Science in Mechanical Engineering from UW than a job. I am not hurting for money because I scored on my remodel. I win some and I lose some. I think I have won more than I have lost in the last 5 years.

    Now i need to get my professional engineering license and remodel another house or condo. Seemed to work pretty good last time. You don’t agree with my approach, but I still really respect your ability to predict the market. We just have different approaches.

  27. 27
    Marcel says:

    No, I do not have a trustee sale date yet. The mortgage company is still requesting documentation from me of my income acting like they’re looking at the possibility of remodifyng my loan.RE: ARDELL @ 22

  28. 28
    Marcel says:

    Thank you so much for all of the great information! I definately will speak with an attorney about this. And thanks for the links also.By Kary L. Krismer @ 25:

    One more thing you should read:

    http://www.trulia.com/blog/kary_l_krismer/2013/12/mortgage_debt_relief_act_falsehoods_update

    The Mortgage Debt Relief Act will be expiring in four more days, and obviously you won’t likely be completing a short sale before then. It’s also rather unlikely that the current Congress will extend that again. That does not mean though that if they don’t that you will have a tax consequence from a short sale, or that if they do extend it that you won’t have a tax consequence. The tax impact of a foreclosure might also be affected.

    Unfortunately every real estate attorney might not be able to properly advise you on the tax consequences–but some who can’t may try.

  29. 29
    Dennis says:

    RE: Corndogs @ 17
    Ya know, I decided to be sick of people like you. That attitude has cost me over 100k in payments in the last 5 years to still have zero equity in a house I’ve lived in for 16 years. If the government hadn’t made rules forcing banks to make loans to people that couldn’t afford them, the housing market wouldn’t have collapsed and brought the economy with it. The banks got money, the government is bigger and I lost what should have been a 5% increase in equity over the term instead of going into the toilet. And people like you say crap like “pay your bills, you’re the problem”???? Now I don’t have enough life left to break even and buttheads think I should sacrifice the remainder of my life to be the only one of the people involved in this “deal” that is still paying? Yep, I’m sick of people like you

  30. 30
    Dennis says:

    RE: Corndogs @ 23RE: Corndogs @ 17
    Ya know, I decided to be sick of people like you. That attitude has cost me over 100k in payments in the last 5 years to still have zero equity in a house I’ve lived in for 16 years. If the government hadn’t made rules forcing banks to make loans to people that couldn’t afford them, the housing market wouldn’t have collapsed and brought the economy with it. The banks got money, the government is bigger, the people that couldn’t afford their homes to begin with left a long time ago and I lost what should have been a 5% increase in equity over the term instead of going into the toilet. And people like you say crap like “pay your bills, you’re the problem”???? Now I don’t have enough life left to break even and buttheads think I should sacrifice the remainder of my life to be the only one of the people involved in this “deal” that is still paying? Yep, I’m sick of people like you. Everybody that were told to wait it out and in 3 to 5 years the value would come back did the right thing and have been screwed for it. If you were 60 and did the right thing, by the time your home has equity to make up for the payments paid in that time, you’re likely to be 10 years dead. But you’d at least go to your grave making “you” happy

  31. 31
    Scott says:

    I have a family member who has been unable to pay his mortgage for going on 18 months. Has been going back and forth with banks, readjusting incomes etc and trying to come up with a payment plan that works. They have a small second loan on the house that they have renogitiated with and are up to date on, but it is less than 15% of the overall mortgage debt I believe. It is looking like the bank will likely not be able to find compromise on a payment to keep them in the house, bank has been discussing short sale options and also some program where they turn over the keys and get paid 3000$?.

    I’m wondering what this scenario will play out like. If my relative doesnt agree to a short sale and just walks away, will the house guaranteed go up for auction? This is in snohomish county. I’m curious as to the process that the homes go through when someone walks away. I might be interested in buying the house if it goes up for auction, but trying to research how the process will unfold. Any insight would be appreciated!

  32. 32

    RE: Scott @ 31 – Your family member should really consult with an attorney and a tax professional (a real one, not one with a short sale negotiator).

    Buying foreclosures is risky, but here this might be a good scenario since you know the property. Not being experienced in the process, all I’ll say is make sure you can get title insurance.

  33. 33
    Scott says:

    RE: Kary L. Krismer @ 32 – Kary,

    Thanks for the reply. What kind of tax issues are at play for them if they walk away from the house completely?

    Also yes i’ve always thought of foreclosures as risky, but given the inside knowledge of this house, it had me pondering the opportunity.

    Thanks again

  34. 34

    RE: Scott @ 33 – There is no clear authority on whether a non-judicial foreclosure in Washington state is treated as recourse or non-recourse. My advise is that they should contact a tax professional on that issue–one that will actually be filing their return.

    http://www.trulia.com/blog/kary_l_krismer/2014/01/how_are_washington_state_non_judicial_foreclosures_taxed_irs_letter_on_california_short_sales_might_be_the_key

  35. 35
    Macro Investor says:

    It really makes sense to advise people too poor to pay their mortgage to get an attorney, an accountant, and maybe even a few butlers, gardeners and personal assistants. And, hey — don’t forget the chauffeurs… gotta keep that Bentley washed and waxed.

    Ray Pepper had the only sensible advise for people in this kind of trouble. Stall the bank any way you can with offers to re-negotiate the loan. But don’t ever walk away. Stay and live rent free for as long as you can drag it out. Save everything you can for that eventual day when you are kicked out. Don’t waste a penny on lawyers and accountants unless you are rich.

  36. 36

    RE: Macro Investor @ 35 – Okay, I’ll blow my last post on this topic to respond to this.

    That is the worst advice possible. You can easily have a $20,000 or $30,000 tax hit (or more) from a transaction which nets you zero dollars. And that tax liability will not go away in a bankruptcy for over three years (three years from the last date for which the return for that year was due).

    So, someone can take advice from Ray and Macro Investor, and end up in a world of financial hurt, or spend a few hundred dollars to figure out what the result is to try to avoid such a result. And when you consider the fact that someone will probably have to pay to have their taxes done in the year of a short sale or foreclosure, the extra cost will probably be fairly low, because most of this work will need to be done anyway to prepare the return.

    And to Scott, one advantage of doing a short sale now is the insolvency analysis on the second, to avoid cancellation of debt income, would be done the year of the sale, not down the road in 3-6 years. If they are insolvent now under IRC 108, then that could be something to consider in deciding what to do.

    Also, Scott, please take this discussion to the open thread if you want me to respond.

  37. 37
    Macro Investor says:

    How in hades can there be “no clear authority” on tax issues that happen thousands of times per year for decades? In short, this is nothing new. Non judicial foreclosure is non recourse.

    Short sales are where you have discharge of debt issues. That is why you never ever do that. This has been discussed so many times here. I don’t know why a real estate attorney would be so confused. I’ll go with Ray’s advice any day. He has real world experience using foreclosures as a successful business.

    Nothing good comes your way by trying to be helpful to a bank. Just sit tight and live for free as long as possible. Don’t get scared by the legal notices and run away or mail in the keys. They cannot do anything to you.

    As everyone knows attorneys hate money. So I’m sure they’ll all be lining up around the block to work pro bono for broke people who are on the cusp of homelessness. In real life they will demand a retainer up front, which will bring this discussion right back to the drawing board — i.e self help.

  38. 38
    ray pepper says:

    I will chime in.

    Never short sale unless the cash for keys is significant.
    I have been involved with probably 100 foreclosures and nobody has had ANY tax implications.
    Pray for Judicial Foreclosure but if you get non judicial plan ahead and you can be like many of our investors who have fought off foreclosures for 7 + years now and those that have foreclosed the people are STILL living in the home.
    Educate yourself and realize YOU hold ALL the cards and the bank has squat!

    and btw ..the worst thing you could EVER do is walkaway…The second worse thing is taking the 3000 to short sale…So many idiots…so little time.

  39. 39
    jeanie johnson says:

    what happens when the bank buys the property at foreclosure sale and then sells it to a private party? The owners significant other does not live there, but claims he has rights to the property. We have no tenant/landlord relationship. How can I get him out? Unlawful detainer deals with tenant issues, non payment of rent. should I file for eeection?

  40. 40
    Keith says:

    A home (worth about 400K) has foreclosed in my Snohomish county neighborhood, The family/occupants are a nuisance and I am wondering when they will be evicted. Background….

    2004 -Immigrant couple with 13 kids purchase the home. They must of had some money or qualified at the time. The past few years the couple seem to work for cash and also be on public assistance.

    Early 2008 – According to public records there was a notice of trustee sale. Trustee sale was canceled. About this same time home was quit-claimed to another person. This person seems to be in real estate business and possibly friend or relative of the family. Even though legal owner changed via quit-claim, occupants of the home remained the same.

    Aug. 2008 – home is quit- claimed back to oldest adult daughter of the original owners. She seems unlikely to be able to afford a home of this value as she single and a waitress. Occupants of the home remain the same -still original family living in home.

    Sept 2013- notice of trustee sale

    Dec. 2013 trustee sale

    Jan 2, 2014 home reverts to lender. Immigrant couple and their children still live in the home, About 5 of their kids are minors (teenagers), the rest are adults and hard to keep track of which adult kids still live there. Most are in and out of jail, children are delinquents. lots of underage drinking, loud parties, etc. I heard one parent has gone back to native country for awhile and other parent is in hospital. teenagers seem to be left alone alot.

    Does anyone know when can I expect this family to be evicted?

  41. 41
    ray pepper says:

    impossible for anyone to tell you based on the info given. Some lenders are allowing tenants to rent back, some are offered cash for keys on a certain date to be out, and if the homeowner is wise they already did a HUGE VARIETY of things to insure their tenancy continues for a VERY long time. In our investor network of properties in or after foreclosure virtually ALL the people are still in the home. The only ones who walk are due to nice cash for keys payments, already bought another home, move for different school for kids…etc

    Good Luck!

  42. 42
    ray pepper says:

    RE: jeanie johnson @ 39 – Jeanie ..Yes…Call Landlord Solutions as well…Ask for Jim Henderson

  43. 43
    Dan says:

    Thanks for the info Tim. I am wondering if you or anyone else may have an answer for my situation. Long story short, my wife and I ended up in foreclosure with Chase. At the end of 2008, my father in law had me get him in touch with the bank and he made an offer to purchase the mortgage, NOT the home. Chase accepted his offer and he became our mortgage holder. He had me pay him everything we had saved for the mortgage payments, $18,500.00 and told me my new monthly mortgage was $2,000.00 including tax and insurance. I started making the monthly payments on time every month and then several months later found out he had moved forward with foreclosure. He had my wife served and held the public auction and then called her to confirm she wanted him to take possession, which he did. We have been separated for 16 months and i was basically threatened with police action if i didn’t leave based on the fact her dad owns the house. After reading the Wa state laws, it seems like he, acting as the bank, didn’t even have the premise to begin foreclosure proceedings. I am wondering how I would go about having the foreclosure reversed based on it being done illegally and un-founded. Anyone have any advise?
    Thanks.
    Dan

  44. 44
    The Tim says:

    RE: Dan @ 43 – You definitely need to contact an attorney who is well-versed in foreclosure and real estate law.

  45. 45
    Dan says:

    Yup. I am just trying to find out as much info as possible before having to get with an attorney.

  46. 46
    Michele says:

    My house is in foreclosure .. which is on HOLD and no sale date has been set because our house is currently on contract for sale.

    My issue is that the mortgage company has gone out and changed one of the locks on our garage door .. went INTO the house. (all the cabinets had been gone thru). I’m not even sure if the stuff under the house has been gone through or taken.

    When I called they said that they were “securing” it because it was vacant. (we have moved out because we are selling the house). We have been in constant contact with the mortgage company regarding the signed contract offers (2 of them), requested pay off letters, etc.

    Does anyone know if it is legal in WA state for a mortgage company to change the locks on our house, gain access to our house ??

    Again, we still own the house. The house has NOT been thru the final stages of foreclosure. If anyone can give me WA state laws or references, I would appreciate it.

    MT

  47. 47
    The Tim says:

    RE: Dan @ 45 – Unfortunately your situation sounds very specific, and I can’t really speak to how you should proceed, other than contacting an attorney.

  48. 48
    The Tim says:

    RE: Michele @ 46 – I’m not a lawyer and this is not legal advice, but I don’t think they have a right to do that until they’ve foreclosed.

    Obviously I sound like a broken record here, but you need to contact a real estate attorney.

  49. 49
    ray pepper says:

    Michele, just curious… why do you care? Do you use it on weekends for vacation get aways? Rent it out VRBO? Birthday party/ Weddings and funerals? and yes, they can secure a vacant premises that has no utilities rendered to protect their asset.

  50. 50
    The Tim says:

    RE: Michele @ 46 – Kary pointed me to this video which is relevant to your question.

    https://www.youtube.com/watch?v=Ju7dNeKuqIY

  51. 51
    Michele says:

    RE: ray pepper @ 49 – why wouldn’t I care .. its MY HOME ?? I don’t know these people who went into my home. I don’t even know HOW they got into my home. I think your question is ridiculous

  52. 52
    Michele says:

    RE: The Tim @ 50 – thank you so much for the video. That answered my question. I will be going to the sheriff and filing a trespass report.

  53. 53
    Kary says:

    By Michele @ 51:

    RE: ray pepper @ 49 – why wouldn’t I care .. its MY HOME ?? I don’t know these people who went into my home. I don’t even know HOW they got into my home. I think your question is ridiculous

    I’m going to break one of Tim’s rules by logging in under a different name and say you should ignore Ray’s advise too. Real estate agents shouldn’t be giving legal advice, and to tell people the bank has the right to break into your house is legal advice. I don’t necessarily agree with all the advice in that video, but it’s better advice than what Ray gave.

  54. 54
    Juanita says:

    we were about to lose our house. we had a family member who was going to try an d buy out our mortgage on a short sale and rent the house back to us, just so we can keep our home but found out it is against the law. If anyone wants to keep their home, a loan modification may work for you. These guys were able to help us in Chicago, loanmodificationillinois .com if anyone reading this is looking for foreclosure alternatives.

  55. 55
    Jimmy says:

    The I don’t know about “HAMP” in Washington state…. But as a “borrower” that has been recently foreclosed on by BOA/Nationstar, In the state I live in, “HAMP” is a big joke!

    We got two months behind on our mortgage after a I was fired from my job of 15 years because I hurt my back AT WORK, we were working on a “HAMP modification” with Bank of America, we made our three trial payments which by the way we’re through the roof ($500.00) higher than our already REDICULOUS monthly payments. We received a letter from BOA stating that they had sold off our mortgage to Nationstar (another joke), and that they would no longer be servicing our loan.

    Nationstar immediately contacted us to let us know that we were almost three months delinquent so we told them about our “modification agreement” with BOA but they informed us that they would not honor the previous agreement and that we would have to start over with them. They STRUNG US ALONG (NOT THE OTHER WAY AROUND) for almost two years, we wanted to make our mortgage payments but we’re told that they could not accept any payments until the “HAMP modification” was completed…..

    Long story short, they NEVER completed the modification and also told us that our “modification ” was still in review after finding out that the original lender had already foreclosed on us nearly a month prior to that date!!! We contacted our county courthouse and they have NO record of a foreclosure sale now or ever involving our property.

    HAMP / Making Homes Affordable is nothing but a scam. We are currently working with an attorney that said this is happening way too much and hope to join in a class action lawsuit to keep our home.

  56. 56

    I’m breaking Tim’s rule again to tell Jimmy to get his own attorney. Don’t rely on some class action being filed at some point in the future.

    This is the website of one attorney I know who works in the area. You might review it.

    http://www.predatorylendinglaw.com/

  57. 57
    Tawny says:

    After the Metropolitan Mortgage/Bain case, lenders have been resorting to judicial foreclosures in Washington State. In a judicial foreclosure, even after the Sheriff’s Sale date and the property has been purchased, the borrower has 8 to 12 months to remain on the property rent-free. It is called “Right of Redemption”. Depending on whether the property is held in “agriculture”, or whether or not the bank seeks a “deficiency judgment”, are all factors affecting the right of redemption period. During that period of time, you should negotiate with the Bank for “cash for redemption rights” if they want you out earlier to protect their “investment”. Call it “relocation assistance” or whatever you want, it is to the lender’s advantage to get you out of the home sooner rather than later. Figure out what it would take to get moved, and what amount you could get for renting out your house for a year. Demand that amount if they want you out earlier.

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