Falling behind on your mortgage is one of the most stressful financial situations a homeowner can face. The good news is that Washington State gives you more time and more options than most people realize. Foreclosure here is governed by RCW 61.24, the Deeds of Trust Act, and the process includes specific notice requirements, a mandatory mediation option, and several legal off-ramps that can stop the sale entirely. Here’s a step-by-step guide for Spokane homeowners facing foreclosure.
Understand the Washington Foreclosure Process
Washington is primarily a non-judicial foreclosure state, meaning most foreclosures happen outside of court through the deed of trust process. The lender doesn’t need to sue you — they just have to follow the specific notice and timing requirements in RCW 61.24.
The general timeline from first missed payment to trustee’s sale is roughly 7 to 10 months, broken down like this:
- Days 1-30: First missed payment. Late fee charged.
- Days 30-120: Lender attempts collection. After 120 days delinquent, lender can begin formal foreclosure under federal CFPB rules.
- Notice of Default: Lender (or trustee) sends formal notice. You’re given 30 days to cure or request mediation.
- Notice of Trustee’s Sale: Recorded with the county and sent to you at least 90 days before the sale.
- Trustee’s Sale: Property auctioned at the Spokane County Courthouse steps (or wherever specified in the notice).
This timeline can be faster if the lender moves aggressively or slower if you exercise certain rights (especially mediation). The point is — you have time. Use it.
Step 1: Open Every Letter from the Lender
Sounds obvious, but a lot of people ignore the mail because it’s overwhelming. Don’t. The dates and notices in those letters trigger your legal rights. You need to know exactly where you are in the process. The two critical documents are the Notice of Default and the Notice of Trustee’s Sale. The deadlines on those notices control what options remain available to you.
Step 2: Contact a HUD-Approved Housing Counselor
This is free and one of the most useful steps you can take. HUD-approved counselors are nonprofit advisors trained specifically in foreclosure prevention. They can help you:
- Review your loan documents
- Communicate with your lender
- Apply for loan modification or hardship programs
- Request foreclosure mediation
In the Spokane area, SNAP (Spokane Neighborhood Action Partners) and Parkview Services are commonly used. The full Washington state list is at the Washington State Department of Financial Institutions website. No cost to you. Do this early.
Step 3: Request Foreclosure Mediation
This is one of Washington’s strongest protections. Under the Foreclosure Fairness Act, owner-occupied homeowners have the right to request mediation with their lender through the Washington State Department of Commerce.
Key points:
- You must request mediation within 20 days of receiving the Notice of Default, or 25 days after a referral by a housing counselor or attorney.
- Mediation pauses the foreclosure process while it’s in progress.
- The lender is required to participate in good faith and bring decision-making authority.
- Possible outcomes include loan modification, repayment plan, short sale, or deed-in-lieu of foreclosure.
You must request mediation through a housing counselor or attorney — you can’t do it directly. This is another reason to engage a HUD counselor early.
Step 4: Explore Loss Mitigation Options
Lenders have several programs available to homeowners in hardship. The names vary by servicer, but the categories are consistent:
Loan Modification
The lender permanently changes the terms of your loan — usually lowering the interest rate, extending the term, or adding the past-due amount to the end of the loan. Often the best long-term solution if you have stable income going forward.
Repayment Plan
You make your regular payment plus a portion of the past-due amount for several months until you’re caught up. Works if your hardship was temporary (job loss, medical issue) and you’re now back on stable footing.
Forbearance
The lender agrees to pause or reduce payments for a defined period. The missed payments aren’t forgiven — they’re typically added to the back of the loan or repaid through a plan.
Reinstatement
You pay the entire past-due amount (including fees and interest) in a lump sum to bring the loan current. Often possible up until 11 days before the trustee’s sale. If you can come up with the cash, this is the cleanest fix.
Step 5: Consider Selling Before the Sale Date
If loss mitigation isn’t going to work — your income hasn’t recovered, you owe more than you can realistically repay, or the lender isn’t willing to modify — selling the property before the trustee’s sale is often the best way to protect your credit and walk away with some equity (if you have any).
You have two basic paths:
- Traditional listing. Works if you have time (60-120 days) and the property is in saleable condition. The mortgage gets paid off at closing and any equity comes to you.
- Cash sale. Works if you don’t have time. A cash buyer can typically close in 7 to 21 days, paying off the lender directly and leaving you with whatever equity remains. We cover this in detail on our page about selling your house before foreclosure in Spokane.
Either path is generally better than letting the property go to auction. A trustee’s sale typically wipes out your equity, damages your credit for 7 years, and may have tax consequences depending on the deficiency.
Step 6: Know About Chapter 13 Bankruptcy
Bankruptcy is a last resort, but it’s a tool to know about. A Chapter 13 filing creates an automatic stay that halts the foreclosure sale immediately. It also lets you reorganize past-due mortgage debt into a 3-5 year repayment plan while staying current on your regular mortgage payment.
Chapter 13 isn’t free, isn’t quick, and has serious credit implications, but for homeowners with steady income who want to keep the house, it can be the right tool. Talk to a Washington bankruptcy attorney before going this route.
What NOT to Do
- Don’t ignore the lender. Silence makes the process move faster, not slower.
- Don’t sign over your deed to a “rescue” company. Washington has strict laws against equity-skimming schemes. Anyone asking you to deed the property to them without paying off the loan in full is likely running a scam.
- Don’t pay upfront fees to a “foreclosure consultant.” Under RCW 61.34, advance fees for foreclosure consulting are heavily restricted.
- Don’t take cash-out refinances that put you in worse shape. Predatory lenders specifically target homeowners in distress.
- Don’t assume you can’t do anything until the day of the sale. Most options dry up 11 days before the sale. Act early.
The Right Order of Operations
If you’re behind on your mortgage and unsure where to start, here’s a practical sequence:
- Open all mail and identify where you are in the timeline.
- Call a HUD-approved housing counselor (free).
- Request foreclosure mediation if you’re within the window.
- Pursue loss mitigation options with the lender in parallel.
- If those won’t work, evaluate selling the property — traditional or cash.
- If selling won’t work and you want to keep the house, talk to a bankruptcy attorney.
If you want to know what selling the property would look like as a way to stop the foreclosure and protect your equity, give us a call at (509) 720-8429 or fill out the short form on this page. We’ll give you a no-obligation cash offer within 24 hours and explain exactly how the timing would work relative to your foreclosure schedule. Even if you don’t sell to us, you’ll know your numbers, which makes every other decision easier.