Got housing issues? Maybe we can help!

The economy is getting better and our unemployment rate is lower than it has been in years, but times are still tough, and one of the hardest hit areas is housing. This session we passed bills that will help the homeless, provide housing assistance, and lend a hand to homeowners in crisis.

We’re supporting proven services that reduce homelessness with HB 2048, which expands highly successful programs that provide services for the homeless. On any given day, 23,000 people are homeless in Washington. This bill, sponsored by Rep. Phyllis Gutiérrez Kenney, will raise $126 million over the next five years for state and local homeless programs via a $10 increase in certain document recording fees.

With the passage of HB 2640, we’re improving the cost-effectiveness of housing assistance. This measure will help Housing Trust Fund dollars go further by emphasizing cost-effectiveness of investments. It requires the Housing Trust Fund to consider both total costs and the cost of housing per unit when reviewing applications for funding.

HB 2614, sponsored by Rep.Phyllis Gutiérrez Kenney, is a comprehensive bill aimed at helping homeowners in crisis by providing alternatives, remedies, and assistance. This measure brings clarity to the short-sale process. A short sale is when a lender accepts a discount on a mortgage to avoid foreclosure. But in some cases the homeowner is still on the hook for the outstanding debt.  HB 2614 creates a notice mechanism so that homeowners are informed if the lender/bank will still collect what’s left of the debt after the home is sold, and it reduces the amount of time, from six to three years, that lenders have to pursue homeowners for remaining debts.

To further help struggling homeowners, HB 2614 was amended to include the provisions of two other consumer protection bills that got stuck in the legislative process:

Rep. Tina Orwall’s HB 2421 makes important changes to the Foreclosure Fairness Act of 2011 to make the mediation program run more smoothly, and streamline the demands on lenders:

• Meet and confer process can be over the phone.

• More time for scheduling mediations.

• More time (120 days instead of 90) between the notice of sale and the trustee sale.

Sen. Adam Kline’s SB 6515 provides remedies for when a home is lost due to mistakes in the trustee sale. Currently, if you lose your home because of a mistake in the foreclosure process, it is impossible to get it back. These provisions allow for the trustee sale to be void if:

• There was an error in the foreclosure sale process.

• There was an agreement for a loan modification or other agreement to postpone the sale.

• The services accepted funds to satisfy the loan when they had no legal duty to do so.

To read this post in Spanish, click here.

Mark your calendar: foreclosure mediation begins July 22, 2011

A new law could help the 45,000 families receiving foreclosure notices this year, by helping them strike a deal with the bank so they can keep their homes. The Foreclosure Fairness Act of 2011 goes into effect on July 22, and the program’s website is already up and running to give homeowners as much time as possible to get ready.

“This is the perfect example of a responsive government,” said state Rep. Tina Orwall, who sponsored the bill (HB 1362) that created the Foreclosure Mediation Program. “People were desperately asking for help, so we got to work on solutions and now it’s a reality. We have the Foreclosure Mediation Program that homeowners need!”

The Foreclosure Mediation Program will help struggling homeowners with housing counselors and independent mediators so they can meet with the bank and review every option to work out the best possible outcome.

The Department of Commerce’s Foreclosure Mediation Program Website includes many useful links for homeowners to get all the information they will need to leap into action come July 22, such as:

- Talk to a housing counselor
- Learn about potential foreclosure alternatives
- Learn about foreclosure assistance programs
- Get foreclosure and mortgage assistance and fraud information

The website will continue adding information, so those interested in the foreclosure mediation program are encouraged to visit the site often. They can also call the Washington State's foreclosure prevention hotline: 1-877-894-HOME (1-877-894-4663).

Governor signs Orwall’s Foreclosure Fairness Act

After two years of intense work with banks and housing advocates, state Rep. Tina Orwall can start thinking about her next mission now that Gov. Chris Gregoire has signed the Foreclosure Fairness Act of 2011 into law. Witnessing the event were community members, stakeholders and lawmakers, all very excited that the new law will bring relief and hope to struggling families across the state.

The law will go into effect in just three months, so those facing foreclosure can look forward to having access to housing counselors that will assist them in the process. Under the new law, homeowners will be able to meet with the bank and an independent mediator to review every available option to keep their homes.

“Having the opportunity to sit down face-to-face with the bank will give struggling homeowners a real chance to work out the best possible outcome for their specific situation,” Orwall said.

To learn more about the Foreclosure Fairness Act, please go here.

To read this blog post in Spanish, go here.