Beginning Jan. 1, 2026, foreclosure mediation program expanded to allow unit owners in associations who are, become delinquent on assessments contact housing counselor.
Bill requires housing counselor, attorney to cause the unit owner, association to meet; provides procedures for deed, trust foreclosures, delinquent assessment foreclosures.
Association must provide to mediator, unit owner documents, itemized ledger for prior 12 months, all association liens against property, association declarations, bylaws.
After receipt of documents, unit owner must provide association documents, evidence of unit owner payments not reflected in association ledger, statement of hardship.
Require notice of delinquency be mailed to unit no later than 30 days after past due.
Revised enforcement process to require the association to wait 15 days after providing notice before taking other actions to collect or charge any collection-related costs.
Commerce Report
Beginning Dec. 1, 2026, Dept of Commerce report to Legislature on performance.
Commerce must make information, resources regarding common interest community foreclosures and related foreclosure programs and resources publicly available online.
Bill added to statutory common interest communities notice of delinquency sample form info about housing counselor meet, confer, referral to mediation processes.
Foreclosure Fairness Account
A foreclosure prevention fee of $80 must be assessed for residential mortgage loan originated within, outside State of Washington, related to property within Washington.
Excepting only reverse mortgage loans issued to seniors over age of 61, remitted time of closing by escrow agent, other settlement, closing agent processing loan into FFA.
May be financed in loan, from loan proceeds, borrower cash contribution at closing.
Commerce is required by Dec. 31, 2025, to report to the appropriate committees of the Legislature on the number and amounts received from the notice of default fee.
The foreclosure prevention fee remitted to the foreclosure fairness account for revenue collected from Jul. 1, 2025, through Nov. 30, 2025, and then annually thereafter.
Legislative History
On Feb. 6, 2024, bill introduced into Senate; on Mar. 7, 2025, bill passed the Senate.
On Mar. 9, 2025, bill introduced into House; on Apr. 23, 2025, bill passed the House.
On Apr. 24, 2025, Senate concurred; on Apr. 27, 2025, bill delivered to the governor.
Effectiveness
Effective Jul. 27, except S. 1-4 and 11-14 effective Jan. 1, 2026; S. 5-7 Jan. 1, 2028.
Sections 1, 2, 4, 11 through 13, and 15 through 17 of this act expire Jan. 1, 2028.
May 2025 WAS LEG Governor Approval
On May 20, 2025, WAS LEG reported governor signed bill, assigned Chapter 393.
Document dated May 20, 2025, was added on Jun. 10, 2025, due to editorial backfill.
