Sunday, August 21, 2011

Foreclosure Fairness Act

I'm sure, by now, you all see news about foreclosure increase and home prices dropping on a daily basis. Washington State legislators responded to the foreclosure crisis by changing the way banks foreclose.

Washington State passed the Foreclosure Fairness Act, which went into effecton July 22, 2011. The new law will allow borrowers more time and a better chance at seeking a work-out solution with lenders to avoid foreclosure. Particularly, the new law requires banks to physically sit down and talk to borrowers before foreclosing. Without this new law, lenders often refuse to slow down the foreclosure process even if there was a possible way to avoid it. Keep in mind that foreclosure in Washington can occur within 6-7 months from a default (missed payment). Now, lenders will be required to slow down the process by a month or two and review alternative options.

More information on the Foreclosure Fairness Act: