All Roll Calls
Yes: 113 • No: 79
WashingtonSB 56862025-2026 Regular SessionSenateWALLET
Expanding and funding the foreclosure mediation program.
Sponsored By: Member 14205
Became Law
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Bill Overview
Analyzed Economic Effects
12 provisions identified: 6 benefits, 2 costs, 4 mixed.
Homeowners get mediation timelines and fee cap
Only borrowers or unit owners referred by a housing counselor or attorney can use foreclosure mediation. The program covers deed of trust and association foreclosures. You may be referred after a notice of default (or after the HOA meet‑and‑confer steps) but no later than 90 days before the sale; after a court stay, referral must be at least 25 days before the new sale date. Within 10 days, the state picks a mediator, tells both sides what to send, and who pays. The mediator’s basic fee is capped at $400 unless waived, both sides agree, or the department allows more. Borrowers have 23 days to send financials; the beneficiary has 20 days after that to send loan records. For HOA cases, the association sends ledgers in 23 days, and the owner has 20 days to reply. The mediator must hold the session within 70 days unless both sides agree to extend. Successors who inherit or get title in a divorce can be referred. If the mediator finds the beneficiary acted in bad faith, that can block a nonjudicial foreclosure and support an injunction when a net‑present‑value test favors a modification; a borrower bad‑faith finding lets foreclosure proceed. If referral came before a sale notice, the trustee waits for the mediator’s certification or 10 days after it was due.
Housing counselors help owners avoid foreclosure
If you are or may become behind on association dues, you can contact an approved housing counselor. Counselors must act in good faith, help you prepare, and explain documents and options to avoid foreclosure. After sending a written request and holding a meet-and-confer with the association, they may refer you to the state foreclosure mediation program. In urgent cases, they can skip the meeting step. Counselors also share program data with the state for annual reports.
Stronger access to HOA records and privacy
Your HOA must keep key records, like budgets, receipts, minutes, owner names and addresses, contracts, insurance, ballots, and seven years of financials and tax returns. If yearly assessments are $50,000 or more, the HOA must get an annual audit unless 67% of owners vote to waive it. Owners, mortgage holders, and their agents can inspect records during business hours or by agreement; most records can also be sent electronically. Give 10 days’ notice; production cannot be delayed more than 21 days without a court order. Private and legal items must be redacted, and the owner list is not shared with mortgage holders or with electronic addresses owners kept confidential. Addresses of known address‑confidentiality participants must be removed. These rules apply to records the HOA had on July 23, 2023, and to records created after; there is no liability for records disposed of before that date.
Stronger preforeclosure rules for condo and HOA owners
If your association assessment is past due, the association must mail a delinquency notice within 30 days and email it if they have your address. The notice is in English and any language you chose, and includes housing counselors, legal aid, and the statewide foreclosure hotline. For 15 days after that notice, the association cannot take other collection steps. During that time, they can charge only printing and mailing costs, up to $10 in admin fees, and one late fee up to $50 or 5% (whichever is less). Before foreclosure can start, condos and HOAs must meet extra steps and you must owe at least the greater of three months’ assessments or $2,000; apartment associations also face timing and second‑notice rules.
More funding for foreclosure help services
The state creates a foreclosure fairness account and splits all receipts this way: 50% for housing counseling, 8% for the Attorney General’s consumer work, 16.5% for civil legal aid, 15% for the hotline, 0.5% for outreach, and 10% to run the program. The Department of Commerce authorizes spending and can make agreements to carry out these services.
Higher costs if you miss HOA dues
Your HOA can charge late fees and interest up to the maximum rate allowed by state law. If it does not set a rate, interest still accrues at that maximum from the delinquency date. The HOA can recover reasonable collection costs and attorneys’ fees, and the winning side in a suit can recover fees, including on appeal. Each assessment is your personal obligation. In a voluntary sale, the buyer and seller are both liable for unpaid past assessments, and an owner may face a personal judgment without the HOA giving up its lien. If a foreclosure sale does not cover the debt, you are liable for the shortfall unless an agreement or law says otherwise. After foreclosure, the new mortgage holder or buyer generally is not responsible for assessments that came due before they took possession; the prior owner may still owe them.
Safeguards and rules for HOA foreclosures
Before a cooperative unit is sold for unpaid assessments, the HOA must send recorded notice to the owner, any lessee, and recorded interest holders. The sale cannot occur until at least five weeks after notice. The HOA may sell publicly or privately after required steps; it may buy at a public sale, and at a private sale only if run by an unrelated fiduciary. Every part of the sale must be commercially reasonable. Sale money pays costs of sale first, then costs to secure and prepare the unit (like taxes, insurance, and agreed attorneys’ fees), then the HOA lien, then other lower‑priority claims; any leftover goes to the owner. A good‑faith buyer gets title free of the HOA debt and subordinate interests. A court may appoint a receiver to collect money during a case, without changing lien priority. You or a junior lienholder can stop a sale any time before conveyance by paying what is owed, including accelerated amounts and reasonable foreclosure costs to that point.
Free HOA owner list and preforeclosure info
You get one free owner list each year and one free copy of the HOA preforeclosure information. The HOA may charge reasonable fees for other copies or supervised inspections. Preforeclosure information must be provided in English and any other language you prefer. Small translation errors do not undo a good‑faith effort.
HOA managers must return records fast
When the management contract ends or the board asks, the manager must give the HOA all original books and records. Electronic records are due within 5 business days, and written records within 10 business days. The manager may keep copies at its own expense.
New $80 fee at mortgage closing
When a residential mortgage on Washington property closes, an $80 foreclosure prevention fee applies per loan. You pay it at closing or it can be added to the loan. Reverse mortgages issued to borrowers over age 61 are exempt. Escrow collects the fee for the state and gives you a notice with hotline numbers.
Mediation notices and in-person meeting rules
The mediator must send written notice of the time, date, and place at least 30 days before the session. The notice says you can have a representative, someone with authority must attend, and all parties must act in good faith. For deed of trust foreclosures, the borrower, the beneficiary or its agent, and the mediator must meet in person. For association foreclosures, phone or video is allowed and authorized representatives may join remotely.
Program dates and public fee reports
Sections 1–4 and 11–14 take effect January 1, 2026. Sections 5–7 take effect January 1, 2028. Sections 1, 2, 4, 11–13, and 15–17 expire January 1, 2028 unless reenacted. The Department of Commerce reports by December 31, 2025 on notice-of-default and foreclosure prevention fees collected July 1 through November 30, 2025, and posts similar information each year.
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Sponsors & Cosponsors
Sponsor
Member 14205
House
Cosponsors
Bob Hasegawa
Democratic • Senate
Noel Frame
Democratic • Senate
T'wina Nobles
Democratic • Senate
Roll Call Votes
Senate vote • 4/24/2025
Final Passage as Amended by the House
Yes: 27 • No: 19 • Other: 2
House vote • 4/23/2025
Final Passage as Amended by the House
Yes: 56 • No: 41 • Other: 1
Senate vote • 3/7/2025
3rd Reading & Final Passage
Yes: 30 • No: 19
Actions Timeline
Effective date 7/27/2025*.
5/20/2025SenateChapter 393, 2025 Laws.
5/20/2025SenateGovernor signed.
5/20/2025legislatureDelivered to Governor.
4/27/2025legislatureSpeaker signed.
4/26/2025legislaturePresident signed.
4/25/2025legislaturePassed final passage; yeas, 27; nays, 19; absent, 0; excused, 2.
4/24/2025SenateSenate concurred in House amendments.
4/24/2025HouseCommittee amendment not adopted.
4/23/2025SenateRules suspended. Placed on Third Reading.
4/23/2025SenateFloor amendment(s) adopted.
4/23/2025SenateThird reading, passed; yeas, 56; nays, 41; absent, 0; excused, 1.
4/23/2025SenateRules Committee relieved of further consideration. Placed on second reading.
4/22/2025SenateReferred to Rules 2 Review.
4/8/2025SenateMinority; without recommendation.
4/7/2025SenateMinority; do not pass.
4/7/2025SenateAPP - Majority; do pass with amendment(s) by Housing.
4/7/2025SenateAPP - Executive action taken by committee.
4/7/2025SenateReferred to Appropriations.
3/31/2025SenateMinority; without recommendation.
3/26/2025SenateMinority; do not pass.
3/26/2025SenateHOUS - Majority; do pass with amendment(s).
3/26/2025SenateHOUS - Executive action taken by committee.
3/26/2025SenateFirst reading, referred to Housing.
3/9/2025SenateThird reading, passed; yeas, 30; nays, 19; absent, 0; excused, 0.
3/7/2025Senate
Bill Text
Session Law
5/23/2025
Bill as Passed Legislature
4/27/2025
Engrossed Second Substitute
3/7/2025
Second Substitute
3/3/2025
Substitute Bill
2/20/2025
Original Bill
2/6/2025
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