Behind on Payments? How to Avoid Foreclosure in Washington
Falling behind on your mortgage is stressful, but you usually have more time and more options than it feels like. The key is acting early.
This article is general information, not legal advice. If you've received a foreclosure notice, contact a HUD-approved housing counselor or an attorney right away.
How foreclosure works in Washington
Most Washington home loans are secured by a deed of trust, which lets lenders foreclose without going to court — a non-judicial foreclosure. The process generally follows a set sequence:
- Missed payments and lender outreach. Before issuing a formal notice of default, Washington law requires lenders to contact the homeowner to discuss alternatives.
- Notice of default. This explains how much you owe and how to cure the default.
- Notice of trustee's sale. This sets a date for the property to be sold at public auction.
- Trustee's sale. The home is auctioned and ownership transfers to the winning bidder or the lender.
The full process typically takes several months, with required waiting periods between steps. That window is your opportunity.
Free help: the Foreclosure Fairness Act
Washington's Foreclosure Fairness Act gives eligible homeowners access to a foreclosure mediation program. A housing counselor or attorney can refer you, and your lender must participate in good faith. Mediation can lead to a loan modification, repayment plan, or another agreement.
Your main options
- Reinstatement: pay the past-due amount plus fees to bring the loan current.
- Loan modification or repayment plan: change your loan terms or spread missed payments over time.
- Forbearance: temporarily pause or reduce payments during a hardship.
- Short sale: sell for less than you owe, with the lender's approval.
- Sell the home yourself: if you have equity, selling before the trustee's sale lets you pay off the loan and keep the difference.
Why selling can protect your equity
Many King and Snohomish County homeowners have built significant equity. At a trustee's sale, that equity can be at risk. Selling first lets you pay off the loan, keep what's left, and avoid a completed foreclosure on your credit report.
A traditional listing can take too long if a sale date is already set. A cash buyer can often close in one to three weeks, working directly from your lender's payoff figures.
Watch out for foreclosure scams
- Never sign over your deed to anyone promising to "save" your home.
- Don't pay large upfront fees for foreclosure help.
- Get every offer in writing and close through a licensed title and escrow company.
If you're in Kent, Federal Way, Marysville, or elsewhere nearby, call us at (425) 845-5905. Even if selling isn't right for you, we'll point you toward resources that can help.