Washington Counties
The State Auction Process in Washington
Washington State operates as a tax deed state, offering tax deed sales as a means of collecting delinquent property taxes. In a tax deed sale, the county government auctions off properties with unpaid taxes to recover the outstanding amounts. The process begins with the issuance of a tax lien on the property by the county. After a specific redemption period has elapsed and the property owner fails to pay the taxes, the county proceeds with a tax deed sale.
During the tax deed sale, interested buyers have the opportunity to bid on the properties. The highest bidder is granted the tax deed, which transfers the ownership of the property to the purchaser. It’s important to note that the property is sold “as-is,” meaning it may have existing liens, encumbrances, or other issues that the buyer assumes responsibility for.
Washington State has specific regulations and requirements governing tax deed sales, which may vary by county. It’s advisable for potential buyers to familiarize themselves with the specific rules and procedures of the county in which they intend to participate in a tax deed sale. Additionally, conducting thorough research and due diligence on the properties up for auction is crucial to making informed purchasing decisions.
Foreclosure Process in Washington
In Washington State, the foreclosure process is primarily judicial, meaning it is handled through the court system. The foreclosure process follows a set of legal steps that the lender must take to recover the property when a borrower defaults on their mortgage payments. Here is an overview of the foreclosure process in Washington:
1. Notice of Default: When a borrower falls behind on their mortgage payments, the lender initiates the foreclosure process by serving the borrower with a Notice of Default (NOD). The NOD states the amount owed and provides a timeframe for the borrower to bring the loan current, usually 30 days.
2. Foreclosure Lawsuit: If the borrower fails to cure the default within the specified timeframe, the lender files a foreclosure lawsuit in the county where the property is located. The lawsuit includes a summons and complaint, which notify the borrower of the legal action being taken.
3. Redemption Period: In Washington, after the foreclosure lawsuit is filed, the borrower has a right of redemption, allowing them to pay off the outstanding debt and prevent foreclosure. The redemption period is typically 6 months from the date of the foreclosure lawsuit.
4. Notice of Trustee’s Sale: If the borrower does not redeem the property during the redemption period, the lender schedules a Trustee’s Sale, also known as a foreclosure auction. The Notice of Trustee’s Sale is published in a local newspaper and posted on the property, providing public notice of the upcoming auction.
5. Foreclosure Auction: The Trustee’s Sale takes place at a designated time and location, usually at the county courthouse or another public venue. The property is sold to the highest bidder at the auction. The winning bidder must pay the full amount in cash or certified funds.
6. Confirmation of Sale: Following the auction, the sale must be confirmed by the court within 20 days. During this period, objections to the sale can be raised. Once the sale is confirmed, the winning bidder receives a Trustee’s Deed, transferring ownership of the property.
7. Possession of the Property: After the foreclosure sale is confirmed, the winning bidder has the right to take possession of the property. If the borrower does not voluntarily vacate the premises, the new owner can initiate eviction proceedings.
1. Notice of Default: When a borrower falls behind on their mortgage payments, the lender initiates the foreclosure process by serving the borrower with a Notice of Default (NOD). The NOD states the amount owed and provides a timeframe for the borrower to bring the loan current, usually 30 days.
2. Foreclosure Lawsuit: If the borrower fails to cure the default within the specified timeframe, the lender files a foreclosure lawsuit in the county where the property is located. The lawsuit includes a summons and complaint, which notify the borrower of the legal action being taken.
3. Redemption Period: In Washington, after the foreclosure lawsuit is filed, the borrower has a right of redemption, allowing them to pay off the outstanding debt and prevent foreclosure. The redemption period is typically 6 months from the date of the foreclosure lawsuit.
4. Notice of Trustee’s Sale: If the borrower does not redeem the property during the redemption period, the lender schedules a Trustee’s Sale, also known as a foreclosure auction. The Notice of Trustee’s Sale is published in a local newspaper and posted on the property, providing public notice of the upcoming auction.
5. Foreclosure Auction: The Trustee’s Sale takes place at a designated time and location, usually at the county courthouse or another public venue. The property is sold to the highest bidder at the auction. The winning bidder must pay the full amount in cash or certified funds.
6. Confirmation of Sale: Following the auction, the sale must be confirmed by the court within 20 days. During this period, objections to the sale can be raised. Once the sale is confirmed, the winning bidder receives a Trustee’s Deed, transferring ownership of the property.
7. Possession of the Property: After the foreclosure sale is confirmed, the winning bidder has the right to take possession of the property. If the borrower does not voluntarily vacate the premises, the new owner can initiate eviction proceedings.
Important FAQ’S
1) How long does it take to get a deed if I am the winning bidder?
A tax deed will be issued within thirty days from the end of the auction. The end of the auction is when the Treasurer deems the entire auction is closed, not when the winning bidder may have paid for the property they won. The tax deed will be mailed to the winning bidder at the address provided after they are notified they won.
2) What happens to all the liens on a property that is sold at the tax sale?
IWiashngton State, the tax lien is the highest priority, see RCW 84.60.010. It is understood that most other liens are extinguished from a tax sale. However, the Treasurer’s Office makes no guarantees, warranties, or implications that a lien holder may or can dispute their lien. There are specific liens that do survive a tax sale. You may want to consult an attorney for legal advice.n
3) Does the Treasurer’s Office have information about the properties in tax foreclosure?
The Spokane County Treasurer’s Office knows very little about the properties in tax foreclosure. Our responsibility is to collect taxes owed to the County. Our office knows nothing about condition, land use, or whether structures on properties are livable. Our office is unable to give any legal advice.
4) Before I make a bid, can I go onto the property and look?
Understand that a tax foreclosure sale is not like a bank foreclosure. The property is privately owned until a new deed is issued. By going onto the property during the tax foreclosure process, you may be trespassing on private property.
5) What happens to properties that do not sell at a tax sale?
They become the trust property of the County. These properties are handled by the Engineers’ office as tax title property.
6) What are market improvements?
Market improvements are something being assessed on real property that is a structure of some sort. These may include, but are not limited to; houses, mobile homes, barns, garages, lean-tos, sheds, and others. Therefore, when reviewing the assessed values of properties, you may come across a land value and a market improvement value. When added together, it is the total value of the property. Be aware, just because the land has a market improvement value, does not mean it is a house or a buildable lot.
2) What happens to all the liens on a property that is sold at the tax sale?
3) Does the Treasurer’s Office have information about the properties in tax foreclosure?
4) Before I make a bid, can I go onto the property and look?
5) What happens to properties that do not sell at a tax sale?
6) What are market improvements?
Counties Links: Washington.pdf
In Summary
The important points of the Washington state auction process are summarised below-
1.Type of Auction– Tax Deed
2.Location and time- The exact time and location of the auctions can differ from county to county. Typically, they are conducted at a designated government building or courthouse within the county where the property is located. Interested bidders should check with the specific county treasurer’s or sheriff’s office for auction schedules and venue information.
3.Redemption Period:The length of the redemption period can vary, but it is generally one year from the date of the auction.
4.Type of foreclosure- Judicial
5.Foreclosure Redemption period- 6 months from the date of the foreclosure lawsuit.
1.Type of Auction– Tax Deed
2.Location and time- The exact time and location of the auctions can differ from county to county. Typically, they are conducted at a designated government building or courthouse within the county where the property is located. Interested bidders should check with the specific county treasurer’s or sheriff’s office for auction schedules and venue information.
3.Redemption Period:The length of the redemption period can vary, but it is generally one year from the date of the auction.
4.Type of foreclosure- Judicial
5.Foreclosure Redemption period- 6 months from the date of the foreclosure lawsuit.
Online Auction Resources
- Bid4Assets – Washington
- Auction.com
- Xome
- ServiceLink Auction – Washington
- Hubzu
- RealtyBid
- Govease
- HUD Homes USA
- All Auction Sales
- Williams Auction
- Bank Foreclosures Sale – Washington
- Treasury Auctions
- WSDOT Property Sale and Auctions
- RealtyTrac – Washington Foreclosure Auctions
- LandSearch – Washington Auctions
- Alex Cooper – Washington DC Foreclosure Auctions
- Housing Auctions – Washington
- St. Louis Auctions LLC