In Washington State, when a borrower defaults, lenders may seek a nonjudicial foreclosure after exhausting all other options. This situation can be stressful to commercial real estate lenders, especially given the magnitude of assets at stake in a commercial foreclosure.
“While the process can be fraught with complications like back-and-forth between the lender and borrower, press coverage, and emotions, under the surface, state law makes the foreclosure process fairly straightforward,” says Total Lender Solutions CEO Randy Newman. “It is important for lenders to not lose sight of the forest for the sake of the trees.”
The experts at Total Lender Solutions, who have been servicing commercial real estate foreclosures for over fifteen years, recently expanded its nonjudicial foreclosure services to Washington State, giving lenders a reliable partner to navigate the commercial foreclosure process effectively. For lenders who may be enacting their first foreclosure, read to learn more about what to expect during the foreclosure process and why a foreclosure service might help.
Commercial Foreclosure in Washington State: How Does it Work?
Borrowers who sign Deeds of Trusts with a Power of Sale clause attached give lenders the right to foreclose if the borrower breaches their contract. The foreclosure process in Washington happens generally in three stages:
Preforeclosure Stage
When a borrower defaults or breaches their contract, the borrower is officially in pre-foreclosure. The lender or a third-party trustee sends a written notice of default to the borrower, which must be conspicuously posted on the property or personally served to the borrower. The borrower then has 30 days to cure the default before the lender can issue the Notice of Sale.
Notice of Sale Stage
If the borrower fails to cure the default, the trustee sends a written notice of sale to the borrower, which specifies the date and location of the foreclosure sale. The sale must occur no sooner than 120 days from the issuance of the notice of default.
Sale Stage
On the designated sale date, the trustee conducts the foreclosure sale in a public location, typically on the front steps of the county courthouse. The property is sold to the highest bidder.
Post Foreclosure
Once the sale is completed, a confirmation of sale is filed with the county courthouse.
Washington state does not allow for a redemption period after the foreclosure sale. In Washington, deficiency judgments are not allowed for commercial real estate foreclosure that is completed non-judicially.
Commercial Foreclosure Services in Washington State
Given the intricacies of the foreclosure process and the potential risks involved, lenders must ensure thorough compliance with all foreclosure laws.
Lenders, particularly those new to foreclosures, can benefit greatly from partnering with a reliable foreclosure service like Total Lender Solutions. Our services specialize in handling complicated commercial foreclosures and provide the expertise necessary to protect your assets while allowing you to focus on serving your customers.
Keep Your Team Educated About Foreclosure Law
At Total Lender Solutions, we help lenders achieve optimal results in recovering defaulted loans. With over 15 years of industry experience, our team of skilled real estate professionals and legal experts is committed to simplifying complex processes and delivering clear resolutions for both institutional and private lenders.
Contact Total Lender Solutions to begin your effective loan recovery.