Bill > SB5686

This bill expands and funds the foreclosure mediation program in Washington State, introducing several key provisions to help homeowners and unit owners facing potential foreclosure. The bill creates a new process for homeowners and unit owners in common interest communities (such as condominiums and homeowners associations) to receive assistance when they are at risk of losing their property due to unpaid assessments. Housing counselors will now play a crucial role in helping owners navigate potential foreclosure by preparing them for meetings with their associations, advising them about available options, and potentially referring them to a mediation program. The bill mandates a "meet and confer" process where owners and associations must attempt to resolve assessment delinquencies before proceeding to foreclosure, and introduces a new foreclosure prevention fee of $80 on residential mortgage loans to help fund foreclosure prevention services. Associations must now provide more detailed and multilingual notices to owners when assessments become past due, and are restricted from taking certain collection actions immediately after sending the first notice. The bill also modifies the existing foreclosure mediation program to include unit owners in common interest communities, ensuring they have similar protections and opportunities to work out payment issues as traditional mortgage borrowers. The changes are designed to provide more support and options for homeowners facing potential foreclosure, with staggered implementation dates beginning in 2026.