The Foreclosure Fairness Act went into effect in its current form in July 2012. The better-known component of this legislation is mediation, which can only be requested by an attorney or housing counselor and only after a homeowner receives a Notice of Default. The lesser-known part of the law is that homeowners have options before the Notice of Default and mediation.

If you miss payments on your mortgage, lenders can issue what is called a Notice of Pre-Foreclosure Options (NOPFO). When you are late on your mortgage payment, it can be easy to get overwhelmed with the letters and paperwork your lender sends. But if you don’t open and read everything, you may miss an important opportunity to work with your lender and buy yourself some time to avoid foreclosure. This notice can be easy to miss because you will actually not see these words on the first page. Instead the first page will say “Important Rights for Homeowners.”

The notice gives you the right to request a meeting with your lender – referred to as a “meet and confer” session – to discuss options to avoid foreclosure. Unlike mediation, a there is no neutral third party involved, and borrowers can request the meeting themselves. In addition to allowing for the meet and confer, this notice can also extend the foreclosure process by another 60 days.

Simply receiving the notice doesn’t guarantee you these rights. They are only available if you respond to the NOPFO within 30 days of the date listed on the notice. The notice will give you two ways to request the meeting, either in writing or by phone. We suggest that you respond in writing by certified mail so you have a record of it. Here’s some sample language you can use to write your own letter.

Your lender should contact you to schedule a meeting after they receive your response to the NOPFO. The best way to use this time is to submit your loan modification request beforehand so the lender has a chance to review it. This allows the meeting to focus on your specific situation, rather than just general options. Solid Ground’s housing counselors can help you prepare this packet for submission and represent you at the meet and confer session.

The meeting may result in a decision about eligibility for a loan modification or other options, or the lender may outline additional documents needed for review. If there is no agreement reached at this meeting, the lender can continue with the foreclosure process and issue a Notice of Default.

As of June 30, 2017, Solid Ground’s Mortgage Services program closed, and we no longer accept new clients. If you are a former Solid Ground Mortgage Counseling participant and need your files transferred, please leave a message at 206.694.6768. You can also visit our Housing Resources webpage for some resources for Washington state homeowners.