Foreclosure Defense

Foreclosure defense has morphed considerably in Washington state since the early 2000’s into its present form.  A decade ago, there were very favorable cases that would allow a homeowner to quiet title post bankruptcy, attack robo signing, and other similar litigation.  Recent court decisions are more creditor friendly and have cut off many older approaches.  We have shifted our practice in light of these changes and offer only more limited services.

Foreclosure Defense

Due to the less favorable decisions by the Washington Supreme Court and lower courts, traditional litigation is far less effective in the face of a judicial or non-judicial foreclosure.  While we are capable of any approach from produce the note to quiet title, generally we are only focusing in these approaches:

 

Limiting the past due sums to only the past six years

In general, the statute of limitation on the principal balance of a mortgage is the length of the mortgage (usually 30 years) plus six years under RCW 4.16.040.  However, individual payments due under the mortgage have a lifespan of six years based on the same statute.  So if you are ten years behind in your mortgage, you in theory can get four years knocked off.

 

Bankruptcy to allow repayment of arrears

We can use a chapter 13 bankruptcy to stop a foreclosure and force a lender or servicer to accept payments over time.  We can object to unauthorized arrears to any claim filed.  This can be used against a judicial or a non-judicial foreclosure (RCW 61.24).

 

Important legal updates

The Copper Creek case (2023) puts to rest the argument that a six year statute of limitation applies post bankruptcy.  This overrules Jarvis v FNMA and subsequent cases using its logic.  It firmly entrenches that bankruptcy does not impact the standard rules of how a statute of limitation works for the principal balance and monthly amounts due.

The Summerhill Village (2012) case puts to rest the ability of an HOA to foreclose a tiny super priority amount and walk away with all the equity

 

Call Us Today to Learn About Your Legal Options

Foreclosure defense is a nuanced area of law which requires an understanding of the foreclosure process, the financial consequences of foreclosure, and related areas of law allowing you to stop, delay, or set aside a foreclosure. At Washington Debt Law, foreclosure defense is a cornerstone of our practice. Call us today to see how we can help keep you in your home.