Washington Attorney General steps in to ensure homeowners can contact foreclosure trustees

SEATTLE – Six months into its investigation into unlawful business practices by foreclosure trustees, the Washington Attorney General’s Office announced that it has uncovered an additional widespread problem that jeopardizes homeowners’ chances of stopping a foreclosure.


“Foreclosures run on strict timelines and homeowners need a human who they can talk with face to face when there’s a problem,” Attorney General Rob McKenna said. “They need an office where they can make last-minute payments or show documents that may prove reasons for stopping forced sales.”

“Washington law requires that foreclosure trustees maintain actual offices in our state and local phone numbers for this reason,” he continued. “But our investigation shows that some of the largest trustees are not in compliance and borrowers who have a legitimate reason to stop a foreclosure are having trouble reaching trustees.”

McKenna said his office’s Consumer Protection Division is contacting a handful of trustees believed to be violating the law. The office isn’t naming those trustees at this time, but said they are processing large volumes of foreclosures in Washington. In addition, the office sent a letter today to all trustees operating in the state that notifies them of their obligations.

The state’s Deed of Trust statute was amended in 2008 to ensure that trustees are knowledgeable about Washington law and that they are available for last-minute payoffs when homeowners are trying to catch up on their mortgages or have a legitimate reason to stop a sale. Having an agent in Washington State isn’t sufficient; the law also requires that the trustee itself maintain an office with a phone where homeowners can go to resolve their foreclosure issues.

The investigation is being conducted solely by the Washington Attorney General’s Office, which is also a participant in the multistate investigation by attorneys general into abuses in the mortgage servicing industry.

Read more from  the state Attorney General's website. Click here.

TrusteeLetter2011-04-06