A Washington State borrower, Carlos, receives a Notice of Default on his Kirkland home on February 1. He cures the default on February 25 by paying all past-due amounts and fees. Three months later, Carlos defaults again. Under RCW 61.24, which of the following best describes the lender's options?
Correct Answer
C) The lender may record a new Notice of Default and restart the non-judicial foreclosure process under RCW 61.24.
Under RCW 61.24, curing a default reinstates the deed of trust and the loan to its original terms, but it does not prevent the lender from initiating a new non-judicial foreclosure if the borrower subsequently defaults again. The lender may record a new Notice of Default and restart the entire process, including the 30-day cure period and 190-day minimum timeline, for the new default.
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Related Topics & Key Terms
Key Terms:
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A comparison of the major mortgage loan types—conventional, FHA, VA, and USDA—covering their eligibility requirements, down payment amounts, mortgage insurance rules, and best use cases.
Predatory lending refers to unfair, deceptive, or abusive lending practices that impose unjustified terms on borrowers, often targeting vulnerable populations. It includes practices like excessive fees, inflated appraisals, and unnecessary refinancing.
RESPA is a federal law that requires lenders to provide borrowers with information about settlement costs, prohibits kickbacks and referral fees, and limits escrow account deposits. It applies to federally related mortgage loans.
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