New Short Sale Rules in Washington State

A new law was recently created in Olympia and revises existing law with regard to short sales for owner-occupied properties.  House Bill 2614 goes into effect June 7, 2012. In part, the law provides:

A)  “Upon its first written notice” to the seller, the lender must provide notice that it either “waives” or “reserves” the right to collect the full amount of the debt;

B)  The statute of limitations for a lender to bring an action to collect any outstanding debt after releasing its security interest in the property is shortened to three years.