Distressed Mortgages
We offer two services for clients with distressed mortgages. If you are not facing immediate foreclosure, we can help you negotiate with your bank to work out a solution to your loan in default. If you are facing foreclosure we can refer you into the Washington Foreclosure Mediation Program. We represent clients in this program, which stops the foreclosure process until you have an opportunity to meet with the bank and try and work out a solution.
Foreclosure Mediation
Washington State Foreclosure Mediation Project
The State of Washington is concerned with the large number of Washingtonians who are losing their homes to foreclosure. To address this problem, the state has created the Washington State Foreclosure Mediation Project. At its core, the program establishes a procedure that forces lenders to sit down with borrowers and an experienced third party mediator to try and work out a solution to your home loan default.
To participate in the program you must work with either an attorney or a housing counselor. By law, you can’t do this on your own.
Why this is a good program. In the real world environment of mortgage defaults and foreclosures, it is often difficult for a borrower to meet with the lender to work out an alternative to foreclosure. This program does three important things:
- The program forces lenders to meet and discuss the foreclosure with the borrower.
- By design, the borrower is more informed because the program requires the borrower use an attorney or housing counselor in the
- process.
- A neutral mediator who is trained in foreclosures works with the parties to try to come up with a solution that avoids foreclosure.
Solutions
During this mediation as your attorney with you present, we will explore alternatives to foreclosure with the lender with the help of a neutral mediator. Keep in mind that almost any solution is better for you than a foreclosure. Some possible solutions include a mortgage modification where all the parties agree to change the terms of the original loan which typically means a lower payment. The parties may discuss a short sale, where you are allowed to sell your home for an amount less than you owe on your mortgage. This allows a sale in the normal course of business rather than at a low dollar foreclosure sale. In a Forbearance, the lender agrees to put the foreclosure proceedings on hold and either suspend or reduce your payments to fit your personal situation. In a repayment plan, the lender stops the foreclosure process to give you time to catch up on your past due payments. As a last resort you and the lender could agree to a deed in lieu of Foreclosure. You would give the property up, but avoid the foreclosure on your credit report.
The role of Allen & Mead PLLC
The law firm of Allen & Mead PLLC can represent homeowners in default in the mediation. Our first step will be to evaluate your eligibility to participate in the program. Then we will work with you to pull together the information needed for an effective mediation. We will then represent you during the mediation and work hard to protect your interests and try to persuade the lender to agree to an alternative to foreclosure that is feasible for you.
It is important to recognize that we are a law firm and not a loan modification company. We offer no guarantees, and, in fact, it would be unethical for us to do so. We are a private law firm and our clients pay us to represent them in this process. In our initial call we will be glad to discuss our fees and retainer agreement for these legal services.
Next Steps
Call the attorneys at Allen & Mead PLLC at 206.729.5000 to discuss your foreclosure case. There is no charge for this initial call. If you are in default on your home loan, we strongly urge you to seek professional help as soon as possible.
Other resources
Link to Washington Department of Commerce program website. http://www.commerce.wa.gov/site/1367/default.aspx
Link to Washington Government site on foreclosures.
http://www.dfi.wa.gov/consumers/homeownership/foreclosure_help.htm
Link to King 5 news report on the foreclosure mediation program.
http://www.king5.com/news/local/Foreclosure-mediation-bill-goes-before-Washington-legislature-114688404.html
Disclaimer, This website is an advertisement for the law firm of Allen & Mead PLLC. The information on this site is general in nature and is not to be considered legal advice. Contacting us does not establish us as your lawyer. For us to represent you, we must formally agree to represent you in a written retainer agreement. In any foreclosure situation, we strongly urge you to act quickly.