OLYMPIA – For the 45,000 families receiving foreclosure notices this year, a new law could help them strike a deal with the bank to keep their homes. The Foreclosure Fairness Act of 2011 goes into effect on July 22 and the program’s website is already up and running to give homeowners as much time as possible to get ready.
“This is the perfect example of a responsive government,” said state Rep. Tina Orwall , who sponsored the bill (HB 1362) that created the Foreclosure Mediation Program. “People were desperately asking for help, so we got to work on solutions and now it’s a reality. We have the Foreclosure Mediation Program that homeowners need!”
The Des Moines Democrat, a long-time affordable housing advocate, worked for two years in negotiations with stakeholders to develop a plan that benefits both homeowners and financial institutions.
“It was all worthwhile,” she said about the many hurdles she had to clear to turn an idea into a piece of legislation and then, finally, to a working program that will provide a much needed service. “And knowing that this program will really help many families either salvage their homes or put an end to the ordeal of the foreclosure process, I would certainly do it all over again.”
Orwall’s bill, which was signed into law by Governor Gregoire on April 14, gives homeowners facing foreclosure access to housing counselors who will assist them in the process. They will be able to meet with the bank and an independent mediator to review every option and work out the best possible outcome for their specific situation.
The Department of Commerce’s Foreclosure Mediation Program Website (https://www.commerce.wa.gov/site/1367/default.aspx) includes many useful links for struggling homeowners to get all the information they will need to leap into action come July 22:
- Talk to a housing counselor
- Find out what to do if you are late or can’t make payments
- Learn about potential foreclosure alternatives
- Learn about foreclosure assistance programs
- Get legal help
- Get foreclosure and mortgage assistance and fraud information
The website will continue adding information, so those interested in the foreclosure mediation program are encouraged to visit the site often. They can also call the Washington State’s foreclosure prevention hotline: 1-877-894-HOME (1-877-894-4663).
