There’s a new powerhouse in town and it can help distressed property owners …  NOPFO is the name.
The Notice of PreForeclosure Options is part of the new WA law enacted June 7, 2012.  It increases the foreclosure timeline and places significant restrictions on lenders.
The WA legislature implemented new procedures requiring lenders to notify homeowners in advance of initiating the foreclosure process.  Here’s how it works.
After a homeowner fails to make a mortgage payment (officially that’s called a default) the lender must first send the NOPFO letter.  It does not have to be sent immediately after the first missed payment.  As a matter of fact, sometimes a number of payments are missed before the lender mails the NOPFO.
The homeowner has 30 days to respond.  Failing to respond allows the lender to then send the Notice of Default during the next 30 days.  However, the important change is this … when the homeowner responds timely by requesting a meeting the lender must then wait an additional 60 days before they can send the Notice of Default.
Upon receipt of the NOPFO letter, the homeowner can ask for a meeting without engaging attorney services.  Homeowners simply have to ask for a meeting.  How that request should be communicated must be outlined in the NOPFO letter.
The lender must make a good faith effort to meet with the homeowner either through a telephone call or a face-to-face meeting. Failure to act in good faith exposes the lender to significant sanctions.
If the first meeting does not go smoothly, the lender can then issue the Notice of Trustee Sale.  The homeowner then has 20 days to request mediation.  This request must be made through an attorney or a housing councilor.  The request for mediation extends any action by lender by another 90 to 120 days.
These additional steps are meant to give homeowners time to fully explore their options.
IMPORTANT . . . you must open all the mail you receive from your lender or you will miss opportunity!
If you or someone you know is struggling with mortgage payments, be proactive.  Call us to discuss your situation.  We are not attorneys (as a matter of fact, we will insist you speak to an attorney).  But, no matter what, call us first.  We can share all of our knowledge and expertise with you to help you formulate your strategy.
We share our knowledge and expertise as a public service at no charge to you.
Call today!  206-588-6801 and visit our information packed website at