Washington State’s version of distressed homeowner help

Washington State has added, in July of this year, a method of bringing owners of distressed properties together with the banks who are owed money on them – something that was sorely lacking.  It’s a great step forward in moving through this foreclosure mess, and it’s called the WASHINGTON FORECLOSURE FAIRNESS ACT HOMEOWNERS MEDIATION PROGRAM.  Some particulars are listed below:

What is foreclosure mediation?
Mediation is a process where the mediator assists the Homeowner and the Lender to reach a fair, voluntary, and negotiated
agreement. A mediator is not a judge. Foreclosure mediation programs have proven very effective in reducing foreclosures.

 
Who is covered by the new Foreclosure Fairness Act Mediation Program?
Homeowners are covered if they are in owner-occupied properties and have either: (1) received a Notice of Default on or before
the effective date of the Act, and their house has not yet been sold at foreclosure sale; or (2) after the effective date,  and have not yet
received the Notice of Trustee’s Sale. Any lender or servicer who did 250 or more foreclosure sales in Washington during the previous
year is covered. The Act was effective on July 22, 2011. The Department of Commerce will administer the Mediation Program.

 
How does a Homeowner request mediation?
Foreclosure mediation can only be requested by a housing counselor or an attorney on behalf of a Homeowner.

 
How much will participating in foreclosure mediation cost?
The Homeowner and the Lender shall each pay a $200 fee for the mediation . The fee must be paid prior to the mediation.