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DELINQUENCY CYCLE OF A MORTGAGE LOAN

In Washington, virtually all home loans are secured by deeds of trust. Although a mortgage differs from a deed
of trust, deeds of trust are commonly referred to as mortgages. An important difference in Washington
between deeds of trust and mortgages is that deeds of trust can be foreclosed without having to start a
lawsuit and take the homeowner to court. In other words, deeds of trust can be foreclosed non-judicially. The
non-judicial foreclosure process takes at least 180 days (around six months) after the date of the borrower’s
first missed payment until the day of the foreclosure. Washington has several opt-in provisions that are
designed to help homeowners fight foreclosure. If a homeowner chooses to opt-in to these programs, the
foreclosure process can go beyond the 180-day minimum. A general foreclosure timeline appears below.

DEED OF TRUST FORECLOSURE TIMELINE
(RCW 61.24)

(1) Deed of Trust must be executed and acknowledged. Deeds of Trust are subject to all laws relating to
mortgages on real property. RCW 61.12.010 and .020, 61.24.020, 64.04.010 and .020.

(2) Default. The borrower is in default the first day after the payment was due. The foreclosure of a deed of
trust cannot occur less than 180 days after the date of default. See RCW 61.24.040(8).

(3) Notice of Preforeclosure Options (NOPFO). If a payment is missed, a servicer may send a number of letters.
The first notice that they are required to send by law is a notice that informs you of your right to a “meet and
confer” with the servicer of your loan, which means that you can request an in-person meeting to discuss
workout options. RCW 61.24.031
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