Total Lender Solutions has expanded its nonjudicial foreclosure services to Washington state. This expansion, with an office located in Sumner, means that the Total Lender Solutions team can now support nonjudicial commercial real estate foreclosures across the entire Pacific Northwest coast.
Washington Nonjudicial Foreclosure: How It Benefits Lenders
Washington state allows for both judicial and nonjudicial foreclosures. Borrowers that sign Deeds of Trusts with Power of Sale clauses attached give lenders the right to foreclose the property nonjudicially should the borrower breach their contract.
Lenders prefer the nonjudicial process because it keeps the courts out of the foreclosure process. This means that the foreclosure can be completed quickly, more easily, and less expensively.
Important Steps for Lenders in a Washington NonJudicial Foreclosure
Preforeclosure Stage
Properties in Washington can go into foreclosure for either a monetary or non-monetary breach. Once a borrower is in default, the lender or the third-party trustee, like Total Lender Solutions, sends a written notice of default to the borrower. The Notice of Default must be posted on the property in a conspicuous place or personally served to the borrower. The borrower has 30 days to cure the default before the lender issues the Notice of Sale.
Notice of Sale Stage
If the borrower does not cure the default, the trustee sends a written notice of sale to the borrower. The Notice of Sale specifies the sale date and location. The sale may not take place less than 120 days from the issuance of the notice of default.
The Notice of Sale must be sent to any interested parties, like junior lienholders or the plaintiffs in any filed court action that requests for a notice. The Notice of Sale must also be posted in a conspicuous place on the property or personally served to the borrower. The notice is also recorded in the court of the county where the property is located and must be recorded at least 90 days prior to the sale date.
Sale Stage
The borrower has up to 11 days before the sale to cure the default, known as redemption. On the day of the sale, as specified in the notice of sale, the trustee will conduct the foreclosure sale, traditionally on the front steps of the county courthouse. In Washington, sales are held on a Friday between 9 AM. and 4 PM, unless that Friday is a legal holiday, in which case the sale will be held on the following Monday.
The property is sold to the highest bidder. If the sale is successful, a confirmation of sale is filed with the county courthouse.
Some events that can delay a foreclosure include the borrower redeeming the property by curing the default. If the borrower files for bankruptcy, reinstates the loan, or files a lawsuit against the lender, the foreclosure can be additionally delayed.
Foreclosure Services in Washington State
Thorough compliance with all foreclosure laws is crucial, and a misstep can result in insurmountable losses for your business. Small-to-medium lenders who need help foreclosing a commercial property, especially lenders enacting a foreclosure for the first time, should rely on a foreclosure service like Total Lender Solutions. We come alongside your team to tackle complicated commercial foreclosures. Contact us today to learn how we protect your assets, freeing you to focus on your customers.
