A homeowner in Bellevue, Washington defaults on his loan. His lender wants to foreclose using Washington's standard foreclosure process. Which of the following best describes what will happen?
Correct Answer
D) The trustee will conduct a non-judicial trustee's sale under the Deed of Trust Act
Washington uses non-judicial foreclosure through a trustee's sale as its standard process under RCW Chapter 61.24. Because deeds of trust are used instead of mortgages, the trustee — not a court — conducts the foreclosure sale. This process does not require court involvement, making it faster and less expensive than judicial foreclosure.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The debt-to-income ratio (DTI) compares a borrower's monthly debt obligations to their gross monthly income. It is used by lenders to determine how much mortgage a borrower can afford.
In the context of foreclosure, a deed transfers ownership of the foreclosed property to the new owner, typically the buyer at a foreclosure sale.
Discount points are upfront fees paid to a lender at closing to reduce (buy down) the interest rate on a mortgage loan. One point equals 1% of the loan amount and typically reduces the rate by approximately 0.25%.
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