In most circumstances, if you lose your house to foreclosure in Washington, you will not be able to repurchase it.
Question
I took out an adjustable-rate loan some years ago to purchase a property in Seattle, Washington. The payments were originally fairly affordable, however they have increased significantly. I can no longer afford them, and my house has lately gone into foreclosure. After a foreclosure auction in Washington, I learned about something called the “right of redemption,” which may enable me to reclaim my home if the foreclosure goes through. How does this function?
Answer
Although it is unlikely, you may be able to buy or “redeem” your house after losing it in a Washington foreclosure. State law grants foreclosed homeowners the right of redemption—but only in certain situations. If your foreclosure is like others in Washington, you won’t be able to get it back by redeeming it after the sale. The redemption laws of Washington are detailed in further detail below.
In Washington, you have the right to redeem after the foreclosure sale.
In Washington, whether you may redeem your house after the sale is determined by whether the foreclosure was judicial or nonjudicial. Here are the guidelines:
Foreclosures via the courts. Following a court foreclosure auction, you have two options for redemption:
If the foreclosing bank waives the right to a deficiency judgment, the period is eight months; otherwise, the period is one year. 6.23.020(1) (Wash. Rev. Code Ann.
If you do not redeem the home during the “redemption period,” your right to obtain the house back this manner expires. You will not have another chance to redeem your house after that.
Foreclosures on abandoned homes in court. You do not receive a redemption period if the court judges that you have abandoned the residence for six months or longer. 61.12.093 (Wash. Rev. Code Ann.
Foreclosures without a court order. In Washington, you cannot redeem your house following a nonjudgmental foreclosure. 61.24.050(1) (Wash. Rev. Code Ann. Because the majority of foreclosures in Washington are nonjudicial, foreclosed homeowners often do not have a right to redeem after the sale.
How Much Will You Have to Pay to Reclaim Your Home?
To redeem (assuming you get that right), you must pay the person or organization that purchased the house at the foreclosure auction the amount of the bid, plus any extra permitted costs after the sale, such as:
Interest on sums paid for past liens, plus interest, and payments paid for assessments or taxes, plus interest on that amount. 6.23.020(2) (Wash. Rev. Code Ann.).
How to Restore Your Home
Before paying the redemption price, you must provide the sheriff at least five days’ written notice that you plan to redeem the residence. 6.23.080 (Wash. Rev. Code Ann.).
If you need assistance with the notification or have any other concerns concerning the redemption process, contact a Washington attorney.
Act Now to Save Your Home Before the Foreclosure Sale
If you wish to retain your house and the foreclosure is nonjudicial, you must find out how to do so prior to the sale. Even in a judicial foreclosure, it is preferable to take action prior to the foreclosure auction.
You may be able to restart the mortgage by paying off the past-due sums, for example. You have until the 11th day before the sale to restart the loan under Washington law. Alternatively, you may be able to negotiate an alternative to foreclosure that would enable you to maintain your home, such as a mortgage modification, forbearance agreement, or repayment plan.