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  1. #1
    Join Date
    Jan 2011
    Posts
    1

    Default Working with Debt Collector Prior to Foreclosure on Commercial Real Estate Loan

    My question involves a foreclosure in the State of: WA

    I have a 12-unit apt building, and have been 2 months behind for about a year. The bank allowed me to continue with this default as long as I kept it under 90 days past due, which I have and still am.

    Last month they sold the loan to a debt collector. I sent a certified letter to the debt collector asking for what they are going to require from me, terms, deadlines, etc. I also stated that I wanted all communications to be in writing, which a wa.gov website I was reviewing stated I have a right to ask for.

    They are leaving messages on my voicemail, and insisting that they must speak to me personally to decide how they are going to proceed with my loan. I have emailed them in response, restating that I am not able to take calls during work hours so to please mail me what they need, etc.

    Do I have a right to demand they communicate with in writing?
    Can they just not answer my certified letter and let time pass and let it go to foreclosure?
    Is the rule for filing for foreclosure in WA state 90 days in default, or 3 months based on the monthly due date (which is the 15th of the month, with a 10-day grace period, so it is not normally considered late until the 26th)? The 90-day limit would require me to pay the 3rd month by the 13th of this month, but a 3-month limit would mean I have until the 15th and possibly the 25th if the grace period would still be in effect.

    I don't want to allow this just to go to foreclosure, but if they won't send me what they are asking for me to pay and by when I don't know what my rights are to prevent it from going that way.

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Working with Debt Collector Prior to Foreclosure on Commercial Real Estate Loan

    If you want to know the authority for the information on the government website, I suggest inquiring with the government agency. As you chose not to share the link with us, I'm not going to go digging for it. You can look up Washington statutes here.

    Your obligations are set forth by contract. Sending certified letters doesn't translate into compliance with the terms of your mortgage. If you're in default and they have, as a result, a contractual right to foreclose, they have that right.

    Grace periods are normally a matter of contract, and I have no access to the documents underlying your mortgage. I'm not aware of any state that requires a lender to allow you to rack up months of nonpayment before they foreclose. I don't see anything here that suggests otherwise, although you may want to review the statutes and other parts of the code as I may have overlooked something.

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