The FORECLOSURE Process, Washington

Washington Foreclosure Process

Start of the foreclosure process. While the homeowner must receive a Notice of Default, it is not commonly recorded in Washington and therefore not tracked in ForeclosureRadar.
RCW 61.24.030

Sets auction date. Recorded at least 30 days after the Notice of Default.
RCW 61.24.030(7)

Initial auction date. At least 90 days from service of Notice of Trustee Sale.
RCW 61.24.040(1)(a)

The sale occurs on a Friday.
RCW 61.24.040(5)

Auction may be postponed for up to 120 days.
RCW 61.24.040(6)

 Transfers property to highest bidder. 

Possession granted 20 days after the sale.
RCW 61.24.060(1)

No deficiency judgment.
RCW 61.24.100

SHORT Sale DEADLINE..

Missing This Important Deadline Could Cost You Tens of Thousands of Dollars.

Right now, if you're a homeowner and do a short sale on your home, you may be able to claim special tax relief and exclude up to $2 million of debt forgiven on your principal residence under the federal Mortgage Forgiveness Debt Relief Act of 2007

Check with your tax advisor to see if your state has a similar mortgage forgiveness debt relief law.  Depending on your specific situation, you could be eligible for up to tens of thousands of dollars of tax savings under these laws.  

But, you better act quickly because both the federal and California laws have an important deadline rapidly approaching.  They are both set to expire on December 31 of this year.  Considering how long it is taking for the average short sale to close (including finding a buyer, getting the short sale approved, and then closing the sale....assuming your buyer has stuck around long enough through the lengthy approval process and you don't have to find another buyer), if you are serious about closing a short sale before December 31, 2012, you should start the processimmediately.  Otherwise, by the time you close, you could find yourself facing a big, unhappy tax surprise.

The author, Jeffrey H. Lerman, Esq., has established a nationwide reputation as "The Real Estate Investor's Lawyer".  He has appeared on TV, radio and in front of numerous real estate investment clubs as an expert.  He has been President of the Marin County Bar Association, Chair of the State Bar Real Estate Litigation Section and Chair of the Marin County Bar Association Real Property Section.  He has lectured at UC Berkeley Fisher Center for Real Estate & Urban Economics and the USC Law Center.  He's Managing Partner of Lerman Law Partners.  Jeff has been practicing law for over 30 years and is the former general counsel for two national real estate syndication companies.  He has published articles nationwide and is a highly sought-after speaker.  He's also a real estate investor and a real estate broker.  You can visit his law firm website at www.RealEstateInvestorLaw.com and his real estate investor education website at www.IEISOnline.com. 

 

Loan Modification HELP

Great information from my friend Steve.

Home Loan Modification Scams Persist

BE CAREFUL !!!


you have to read this excellent article by Robert Aldana.


   http://realtytimes.com/rtpages/20120301_mtgscams.htm

Maria Lozano, a Los Banos, CA homeowner, recently struggled to pay her mortgage so she hired who she thought was a real estate broker. The broker charged her more than $2,000 for a loan modification she never received.




We pray & hope for the best for you and your family as you overcome stress and try hard to get back on solid ground.

Larry Tutino,  Blog Author

NO DEFICIENCY JUDGEMENT???

In many cases, the borrower is completely off the hook on making payments during and after a foreclosure since mortgage loans are non-recourse, meaning the lender is only legally entitled to collect the property, and the borrower has no personal financial liability.

Read more: http://www.thefiscaltimes.com/Articles/2012/01/17/Foreclosure-Squatters-Goad-Lenders-and-Stand-Pat.aspx#page1#ixzz1me6vJJ4W

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What is a deficiency judgment: A deficiency judgment is simply the difference between what the lender is owed and what they are paid back. When a lender is not paid back in full via a short sale, they can go to court and get a court order directing the borrower to pay them back the difference. The lender can then take that judgment and attach it to the borrower’s other properties, if they have any, or garnish the wages of the borrower.

So are we safe from deficiency judgments in Washington State? No.

In Washington, the lender gives up the right to a deficiency judgment if they sell the property or take it back in the non-judicial trustee sale process. However, because a negotiated short sale closes in lieu of a trustee sale, the lender preserves their right to get a deficiency judgment.

You can basically tell the lender that the borrower will simply allow the house to go to sale if they don’t remove the deficiency language in the payoff. Simply cross out the deficiency language and send the payoff back to the negotiator.

Another strategy is to always include language in the Purchase Sale Agreement stating that the sale is contingent on the bank approval and each lender’s waiver of any rights to a deficiency.

So if you short sell, be sure your lender gives up their right to collect a deficiency judgment. The lender will then send you a 1099 form notifying you of the deficiency forgiven which in turn needs to be reported to the IRS as “unearned income.” If this is done before 2012, you can be exempt from paying taxes on this 1099 under the Debt Relief Act of 2007.

Read more: http://solidgroundblog.wordpress.com/2010/02/12/short-sale-and-deficiency-judgments-in-washington-state/

WALKING AWAY from your HOME...

Does it pay to walk away from your home if it is just eating up your families CASH ???




"I constantly get the saddest e-mails from people saying, 'I've exhausted all my life savings, my retirement is gone, and now I have to default,'" said Jon Maddux, CEO of YouWalkAway.com,

a foreclosure agency that helps clients with strategic default (and charges a fee for it). "But if they had seen the writing on the wall a couple of years earlier, stopped paying the mortgage and stayed in the home throughout the whole process, they would be in a much better financial position."


Now that we have all seen that a family can continue to live in their home without making payments for a year or two,,,,,


YEAH......it makes sense.


Moral Quandary

There's a moral component to that decision, of course. People naturally feel embarrassed about breaking a contract and not paying their bills; no one wants to be branded a deadbeat. But remember that companies default on their obligations when it makes financial sense for them to do so, via the bankruptcy process. Even the Mortgage Bankers Association itself, in a flourish of irony, arranged for a short sale of its Washington headquarters.


But, you better make a wise choice because of the obvious effects of damaged credit lines.


Today, there are many opportunities to buy a home through lease-options and Rent2Own programs that require very little credit.   
It is all a numbers program.  Which works best for your family and your ability to feed and clothe yourselves.


But,,,,,please take the time to check out how your are going to buy your next home first,,,, before packing up and moving on. 

Foreclosure..FREE RIDE: 3 Years

Great  Story......

Source: CNN MoneyWednesday, December 28th, 2011, 10:58 am

Delinquent borrowers facing foreclosure are learning that they can stay in their homes for years, as long as they're willing to put up a fight.

Among the tactics: Challenging the bank's actions, waiting to file paperwork right up until the deadline, requesting the lender dig up original paperwork or, in some extreme cases, declaring bankruptcy.

Read the full story >>

Just like I've been telling folks for over a year now...

Dig in your feet &  fight.