Washington State's New Distressed Property Law

HB 2791, the Distressed Property Law is legislation intended to protect vulnerable property owners from scams to steal the property owner’s equity. The law went into effect June 12, 2008.

Owners of distressed homes have been victimized by "equity skimmers." Distressed homes are owned by homeowners who
• are at risk of losing their home due to non-payment of taxes.
• are at least 30 days late on their mortgage payment.
• are in default of a mortgage term so that the lender could accelerate the balance owed.
• believe they are likely to default on the mortgage within 4 months and tell this to, among others, the real estate agent.

Here is a link to a copy of the new law: HB 2791

The Washington Association of Realtors has some issues with the law.

Here is Washington State Attorney General Rob McKenna discussing the law.

And some reporting on the topic by KING 5 TV in Seattle.

As your Spokane Realtor I would love to help any homeowner sell their home in Spokane.  If you would like me to list your Spokane real estate for sale we will have to carefully follow the new requirements of this law.  If you are looking for a home Bellingham check out Bellingham Real Estate.