If you’ve fallen behind on your mortgage, you’re not alone, and you’re not out of options. Job changes, medical bills, divorce, military orders, and rising costs push good people behind every day. What matters most now is what you do next.
I’m James Nelson, a Certified Short Sale Expert® and U.S. Coast Guard veteran based in Orting. Here’s a plain-English look at what happens in Washington and how to protect your options.
First, don’t stop opening the mail
The most common mistake I see is avoidance. The letters feel threatening, so they go in a drawer. The calls go to voicemail. Unfortunately, mortgage problems don’t fix themselves. Every month adds late fees and interest, and once the formal foreclosure process starts, your options narrow quickly.
Open every letter from your lender and keep them together. They contain deadlines, contact numbers, and sometimes the options your lender is willing to offer.
How foreclosure generally works in Washington
Most Washington home loans use a deed of trust, which allows a non-judicial foreclosure, meaning it usually doesn’t go through a courtroom. In general terms:
- Missed payments: after a missed payment, your servicer will contact you about the delinquency and your options.
- Notice of Default: a formal notice that you’re in default and what it would take to cure it.
- Notice of Trustee’s Sale: sets a date for the home to be sold at auction, typically several months out.
Washington also has protections that many homeowners don’t know about, including the Foreclosure Mediation Program, which can bring you and your lender to the table with a neutral mediator. A HUD-approved housing counselor or attorney can tell you whether you qualify. Timelines and rules change, so get current advice for your situation.
Your main options
Depending on your situation, you may be able to:
- Catch up with a repayment plan if the hardship was short-term.
- Request forbearance to temporarily reduce or pause payments.
- Apply for a loan modification to permanently change your loan terms.
- Sell the home traditionally if it’s worth more than you owe.
- Sell through a short sale if you owe more than the home is worth.
- Offer a deed in lieu of foreclosure in some cases.
Doing nothing is almost always the worst choice. It hands the timeline to your lender.
Three steps to take this week
- Call your servicer and ask for the loss mitigation department. Write down who you talked to and when.
- Call a free HUD-approved housing counselor at 800-569-4287, or the Washington Homeownership Hotline at 877-894-4663.
- Get a realistic idea of your home’s value. Whether you have equity or are underwater changes which options make sense.
Watch out for “rescue” offers
Because foreclosure filings are public, homeowners who fall behind get targeted by scammers. Anyone who guarantees to stop your foreclosure, asks for money up front, or wants you to sign over your deed is a red flag. Here’s how to spot a foreclosure rescue scam.
Want a second opinion?
If you’d like to understand where you stand, I’m happy to talk it through confidentially, with no pressure and no cost. You can also download my free guide, “Behind on Your Mortgage? Know Your Options.”