Foreclosure Prevention Fee FAQ
Starting in 2025, a new Foreclosure Prevention Fee will be added to most mortgage transactions in Washington State. This nominal fee is part of the Foreclosure Fairness Act (FFA) and helps fund services like housing counseling and mediation to support homeowners at risk of foreclosure. Check out the FAQs below to learn when it applies and what to expect.
What is the Foreclosure Prevention Fee?
The Foreclosure Prevention Fee is an $80.00 fee financed or paid from any borrower cash contribution at the time of a residential mortgage loan closing originated within or outside of the state of Washington and related to property located within the state of Washington, excepting only reverse mortgage loans issued to seniors over the age of 61.
What is the purpose of the Foreclosure Prevention Fee?
The Foreclosure Prevention Fee supports a suite of foreclosure prevention services available to all Washington state residents through the Foreclosure Fairness Act. These services include:
- A statewide hotline for foreclosure and homeownership assistance,
- Access to free housing counselors,
- Access to free and low-cost civil legal aid attorneys, and
- Low-cost foreclosure mediation.
Who owes the Foreclosure Prevention Fee?
The $80 Foreclosure Prevention Fee is due from the borrower(s) at the time of closing.
How will the Foreclosure Prevention Fee be paid?
The Foreclosure Prevention Fee can be financed in the loan and paid from the loan proceeds or from any borrower cash contribution at the time of closing. The fee will be collected by the closing entity processing the loan closing and paid to the Washington State Department of Commerce.
Statewide Toll-Free Numbers for Foreclosure Assistance:
- The statewide foreclosure hotline for assistance and referral to housing counselors recommended by the Washington State Housing Finance Commission:
Toll-free: 1-877-894-HOME (4663)
Website: hftps://www.homeownership-wa.org/**** The statewide civil legal aid hotline for assistance and referrals to other housing counselors and attorneys:
Toll-free: 1-800-606-4819
Website: https://nwjustice.org/home (opens in a new tab) (this link will show a message before it opens)