What Is Foreclosure?
Foreclosure is a legal process that begins when a homeowner falls behind on mortgage or property tax payments, giving the lender the right to take back the property and sell it at auction. States like Washington, Oregon, and Arizona primarily use a fast-moving trustee sale process, meaning the foreclosure can move forward without going through the courts. Once notices are issued, most owners have a limited window to catch up on payments, request assistance, or sell the property before the auction date is set. Selling before foreclosure can protect your credit, preserve your equity, and give you far more control than waiting for a forced sale. Whether it’s a home or vacant land, taking action early is the key to avoiding long-term financial consequences.
Washington’s Foreclosure Process
In Washington State, most foreclosures happen through a process called a non-judicial foreclosure. This means the lender does not need to take the homeowner to court. Instead, the foreclosure is handled by a trustee on behalf of the lender, which makes the process move quickly once notices begin.
A smaller number of foreclosures happen through a judicial foreclosure. This occurs when the lender or government (such as for unpaid property taxes) files a lawsuit and must obtain a judge’s approval before the property can be sold at auction. Judicial cases typically take longer but are less common.
Washington also allows for an expedited foreclosure in rare situations, such as when a homeowner defaults on certain types of loans like HELOCs or HOA-related obligations. After a judge authorizes the process, it proceeds similarly to a non-judicial foreclosure.
Regardless of the type, Washington law gives homeowners specific rights and protections. Lenders must follow strict timelines and send required notices before they can take the property to auction.
Here is the general process for a Washington non-judicial foreclosure:
1. Notice of Default – The homeowner receives a certified letter informing them they are in default and giving at least 30 days to catch up or make arrangements.
2. Notice of Trustee’s Sale – If no agreement is made, a second notice is sent at least 120 days before the auction. This letter provides the date, time, and location of the sale, and identifies the trustee handling the process.
3. Foreclosure Auction – The sale typically takes place on the courthouse steps in the county where the property is located. Anyone may bid, and the highest bidder becomes the new owner.
4. Distribution of Proceeds – Money from the sale is used to pay trustee fees, legal fees, unpaid interest, the loan balance, and any other lien holders. If there is money left after all debts are satisfied, the remainder goes to the homeowner.
5. Eviction Process – Once the property is sold, the new owner may serve a notice requiring the former owner to vacate, typically allowing three days. If they do not leave, the new owner can file an eviction lawsuit, after which law enforcement may remove the occupants.
6. Deficiency Judgment – In judicial foreclosures, the lender may seek a deficiency judgment if the sale does not cover the full debt. This is less common in non-judicial foreclosures, but the lender has up to two years to pursue unpaid balances in certain cases.
Throughout this process, homeowners maintain the right to reinstate the loan up to 11 days before the auction, or to sell the property before the sale date to avoid foreclosure altogether.
How We Can Help
Facing foreclosure can feel overwhelming, but you’re not stuck. Volcano Developments helps homeowners in Washington, Oregon, and Arizona sell before the auction and avoid long-term credit damage.
We buy houses and land as-is, with no repairs, no commissions, and flexible closings that can often beat bank deadlines.
A full foreclosure can stay on your record for 7 years. Selling early reduces long-term damage.
We coordinate with title and lenders fast so you keep control — not the bank.
Instead of losing the home at auction, you may pocket money after paying off the balance.
We buy properties as-is. No fixing, cleaning, or spending money you don’t have.
The Process of Selling While In Foreclosure
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