A Call For Streamlined Foreclosures in Washington State?

indexWhile many homeowner advocates are calling for fewer foreclosures, some real estate analysts are asking that Washington state’s foreclosure become more streamlined to provide quicker evictions and relieve some of the shadow inventory and rising prices.

Dr. Lawrence Yun (the National Association of Realtors’ chief economist ) surmised that the legal system in Washington was one that provided more obstructions to the foreclosure process, and that was creating a huge backlog of foreclosures that should have already been back on the market.  The striking lack of inventory in our current market is holding back a large crop of eager buyers and stifling home sales in general. (source)

Under current Washington state law, a foreclosure cannot occur less than 190 days from the date of default. And in 2009 the state added additional mortgage servicer requirements:

  • Initial contact by telephone and by letter from the lender or the lender’s agent to the borrower;
  • Assessment of the borrower’s financial ability to pay the debt and modify the loan;
  • Right of the borrower to request a subsequent meeting with the lender or agent to discuss loan modification and other options to avoid foreclosure;
  • Right of the borrower to have a representative at this subsequent meeting.

While these requirements protect homeowners and provide ample opportunity to cure a default, some real estate analysts argue that they are hampering the housing recovery. The argument is that many homeowners are delaying an inevitable foreclosure and in effect creating a swell of shadow inventory that’s slow to make its way to the marketplace. When you have your own invention, visit patent attorneys for consultation.

 

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