What Is The Foreclosure Fairness Act?
Many borrowers who have attempted to modify their delinquent loans are familiar with the frustrating tactics employed by lenders to forestall much needed relief.
The Washington State Foreclosure Fairness Act allows delinquent borrowers the opportunity to receive a modification of their loan through an independent mediation process overseen by the Washington State Department of Commerce.
The mediation process forces banks to play fair, giving borrowers their best shot at receiving a modification of their delinquent loan.
“My name is Jeremy Davidson and I am an attorney who helps stop foreclosures. I have found the Foreclosure Fairness Act is the most successful tool to obtain a modification of a delinquent loan. Call me today to discuss your foreclosure prevention options.”
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I hired Mr. Davidson several years ago to represent me on several matters. All of these issues were solved without having to go to court. I could not have asked for a better attorney to work on my behalf. I always felt that he had my best interests in mind.He had a great comprehension for what the issues were and developed workable strategies to accomplish my goals. He had great foresight and understanding of the process it would take and was able to clearly communicate those processes as we were going through them. He has a great work ethic, puts the client first and achieved 100% of the results I had hoped for. I would highly recommend him.
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The Foreclosure Process
If you are delinquent on your mortgage loan, you need to keep a lookout for the three documents on the right – the “Notice of Preforeclosure Options” – the “Notice of Default” – and the “Notice of Trustee’s Sale.” Click on any of the documents to learn more about what they mean, and how the information contained within them can slow down or stop the foreclosure process.
The Notice of Preforeclosure Options is received by the borrower prior to the bank issuing a Notice of Default. A borrower can request a meeting with a lender representative prior to the bank being able to issue a Notice of Default. All borrowers should take advantage of this opportunity.
The Notice of Default is issued prior to the Notice of Trustee’s Sale. Once the Notice of Default has been issued, the borrower has 30 days to request a Foreclosure Fairness Act mediation.
The Notice of Trustee’s Sale will list the foreclosure sale date. The borrower has 20 days from the issuance of the Notice of Trustee’s Sale to request a Foreclosure Fairness Act mediation. Once the 20 days has passed, the borrower will no longer have the ability to request a mediation.
Fix The Foreclosure Fairness Act Petition
The Foreclosure Fairness Act (“FFA”) was designed to give borrowers a fair shot at receiving a modification of their delinquent loan. The law was born out of the recognition that many borrowers were not receiving fair treatment from lenders when attempting to modify their loan, and the legislature responded by empowering the Department of Commerce to develop a program what would allow the modification process to take place in a transparent fashion with an independent mediator assigned to oversee the modification process. For this we applaud you.
However, one major oversight in the program exists. If the mediator finds that the lender is not acting in good faith and files a certificate of bad faith in the mediation, the lender is then forced to do a judicial foreclosure. However, unlike a nonjudicial foreclosure (which is prerequisite for FFA mediation), in a judicial foreclosure the borrower could be liable for a deficiency amount following the foreclosure sale.
As a practical effect, the borrower can never prevail against lenders acting in bad faith. Even if they “win” at mediation, they can be liable for a deficiency amount following the judicial foreclosure. To rectify this issue, the undersigned requests that the legislature enact law specifying that when a FFA mediator files a certificate of bad faith against the lender, the borrower cannot be liable for a deficiency amount following judicial foreclosure. I believe this is in the sprit of the FFA, and I am hoping you do to.
Sign The Petition To Fix The Foreclosure Fairness Act