Can You Sell Your Property in Foreclosure in Washington?

In Washington State, most homeowners go through a process called a non-judicial foreclosure. This means the lender does not need to file a lawsuit in court. Instead, a neutral third party called a trustee handles the foreclosure on behalf of the lender, which can make the process move quickly once notices begin.

A smaller number of properties go through a judicial foreclosure. In a judicial foreclosure, the lender or a government entity (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 foreclosures typically take longer and are less common than non-judicial foreclosures in Washington.

Washington also allows for an expedited foreclosure in limited 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 of foreclosure, Washington law gives homeowners specific rights and protections. Lenders and trustees must follow strict timelines and send required notices before they can move forward with a trustee’s sale (auction).

For the full legal requirements and timelines, you can review the Washington State foreclosure statute: RCW 61.24.040 – Washington Deed of Trust Act .

Here is the general process for a Washington non-judicial foreclosure:

1. 1. Notice of Default – The homeowner receives a certified letter informing them they are in default on their mortgage payments. This notice explains how much is owed and generally gives at least 30 days to catch up or make arrangements with the lender.

2. 2. Notice of Trustee’s Sale – If no agreement is reached, a Notice of Trustee’s Sale is recorded and mailed at least 120 days before the scheduled auction date. This notice lists the date, time, and location of the sale and identifies the trustee handling the foreclosure.

3. 3. Foreclosure Auction (Trustee’s Sale) – The foreclosure sale typically takes place on the courthouse steps in the county where the property is located. Anyone may bid at the auction, and the highest bidder becomes the new owner once the sale is completed and funds are paid.

4. 4. Distribution of Proceeds – Money from the sale is used to pay trustee fees, legal fees, unpaid interest, the remaining loan balance, and any junior lien holders. If there is money left over after all debts are paid, the remaining funds go to the former homeowner.

5. 5. Eviction Process – After the trustee’s sale, the new owner may serve a notice requiring the former owner or occupants to move out, often giving three days’ notice. If they do not vacate, the new owner can file an eviction lawsuit, and law enforcement may remove the occupants if a court orders it.

6. 6. Deficiency Judgment – In some judicial foreclosures, the lender may seek a deficiency judgment if the foreclosure sale does not cover the full amount owed. This is far less common in non-judicial foreclosures, but in certain situations the lender may still pursue unpaid balances for up to two years.

Throughout this process, Washington homeowners generally have the right to reinstate the loan by catching up on payments and fees up to 11 days before the trustee’s sale. Many owners also choose to sell the property before the auction to avoid foreclosure, protect their credit as much as possible, and move on with a fresh start.

This overview is for general informational purposes only and is not legal advice. If you are facing foreclosure in Washington, consider speaking with a qualified real estate or foreclosure attorney to understand your specific rights and options.