Washington State Passes Foreclosure Rescue Legislation; Currently Awaits Governor's Signature

Washington State lawmakers have successfully passed legislation regulating foreclosure rescue transactions as both houses of the legislature voted in favor of the bill earlier this week. The leaders in the state Senate and state House of Representatives both signed off on the bill yesterday. The bill has since been delivered to the governor's office and currently awaits his signature.

In addition to rules regulating the typical sale and leaseback transactions involving the home of a homeowner facing foreclosure, the bill also targets the so-called equity skimmers (aka rent skimmers) - those who acquire homes in exchange for a promise to take over the payments on existing mortgages, only to turn around and lease or "lease to own" the homes to tenants, collecting and pocketing the rent, security and/or lease-option deposits while, at the same time, stiffing the existing mortgage lender out of its monthly payments and allowing the home to go into foreclosure.

For more, see HB 2791 - 2007-08 Concerning distressed property conveyances (bill history) (full text of passed legislation).