How do foreclosure auctions work in Washington state?

Many Washington properties are bought at public foreclosure auction sales, but the competition may be strong and the prices are higher than during preforeclosure to cover the lender’s legal costs. Therefore, the property will be auctioned to the highest bidder, including the lender.

How does a nonjudicial foreclosure work in your state?

In a nonjudicial foreclosure, the lender can foreclose without going to court so long as the deed of trust contains a power of sale clause. (To find out if you live in a state that permits nonjudicial foreclosures, check our Summary of State Foreclosure Laws .)

How does foreclosure work in the state of Washington?

Washington primarily operates as a title theory state where the property title remains in trust until payment in full occurs for the underlying loan. Foreclosure is a non-judicial remedy under this theory. The document that secures the title is usually called a deed of trust.

Is there a non judicial foreclosure in Iowa?

IOWA is primarily a judicial foreclosure state. There is also a non-judicial voluntary foreclosure available, if the lender and borrower can agree on it, the borrower can transfer the deed to the lender and the lender can subsequently waive their right to sue the borrower for a deficiency judgment.

How are Washington mortgages / trust deeds foreclosed?

Washington law also permits mortgages to serve as liens upon real property and for judicial foreclosures to occur through the courts. Because the power of sale provisions in deeds of trust is a faster mechanism to effectuate foreclosure, this is the primary vehicle to foreclose. How are Washington mortgages/trust deeds foreclosed?

Is the foreclosure process in Washington State nonjudicial?

The method will most likely be nonjudicial, although judicial foreclosures are also allowed. Because most foreclosures in Washington are nonjudicial, this article focuses on that process.

Can a lender use a non-judicial foreclosure process?

One interesting thing is that, in every state that allows lenders to use a non-judicial foreclosure process, it also allows a judicial foreclosure if the lender’s loan documents didn’t include the “power of sale” clause giving them the right to pursue a non-judicial foreclosure.

Can a foreclosure sale be reinstated in Washington State?

In the event of a bankruptcy, a sale may be reinstated no more than 45 days from the dismissal of the bankruptcy or lifting of the automatic stay . In Washington, the lenders can also go to court in what is known as a judicial foreclosure proceeding where the court must issue a final judgment of foreclosure.