BILL REQ. #: S-1564.3

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SUBSTITUTE SENATE BILL 5810
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State of Washington

61st Legislature

2009 Regular Session

By Senate Financial Institutions, Housing & Insurance (originally sponsored by Senators Kauffman, Berkey, Shin, Franklin, Keiser, Tom, and Kohl-Welles; by request of Governor Gregoire)

READ FIRST TIME 02/25/09.

AN ACT Relating to foreclosures on deeds of trust; amending RCW 61.24.010, 61.24.040, and 61.24.060; adding new sections to chapter 61.24 RCW; adding a new section to chapter 59.12 RCW; creating a new section; and providing an expiration date.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION.  Sec. 1   A new section is added to chapter 61.24 RCW to read as follows:
     (1)(a) A trustee, beneficiary, or authorized agent may not issue a notice of default under RCW 61.24.030(7) until thirty days after initial contact is made as required under (b) of this subsection or thirty days after satisfying the due diligence requirements as described in subsection (5) of this section.
     (b) A beneficiary or authorized agent shall contact the borrower in person or by telephone in order to assess the borrower's financial ability to pay the debt secured by the deed of trust and explore options for the borrower to avoid foreclosure. During the initial contact, the beneficiary or authorized agent shall advise the borrower that he or she has the right to request a subsequent meeting and, if requested, the beneficiary or authorized agent shall schedule the meeting to occur within fourteen days. The assessment of the borrower's financial ability to repay the debt and a discussion of options may occur during the initial contact or at the subsequent meeting scheduled for that purpose. At the initial contact, the borrower must be provided the toll-free telephone number made available by the department to find a department-certified housing counseling agency. Any meeting may occur telephonically.
     (2) A notice of default issued under RCW 61.24.030(7) must include a declaration, as provided in subsection (9) of this section, from the beneficiary or authorized agent that it has contacted the borrower as provided in subsection (1)(b) of this section, it has tried with due diligence to contact the borrower under subsection (5) of this section, or the borrower has surrendered the property to the trustee, beneficiary, or authorized agent. The trustee is entitled to rely on the declaration as conclusive evidence that the requirements of this section have been satisfied, and the trustee is not liable for the beneficiary or authorized agent failing to include the declaration.
     (3) A beneficiary's or authorized agent's loss mitigation personnel may participate by telephone during any contact required under this section.
     (4) Within fourteen days after the initial contact under subsection (1) of this section, if a borrower has designated a department-certified housing counseling agency, attorney, or other advisor to discuss with the beneficiary or authorized agent, on the borrower's behalf, options for the borrower to avoid foreclosure, the borrower shall inform the beneficiary or authorized agent and provide the contact information. The beneficiary or authorized agent shall contact the designated representative for the borrower for the discussion within fourteen days after the representative is designated by the borrower. Any deed of trust modification or workout plan offered at the meeting with the borrower's designated representative by the beneficiary or authorized agent is subject to approval by the borrower.
     (5) A notice of default may be issued under RCW 61.24.030(7) if a beneficiary or authorized agent has not contacted a borrower as required under subsection (1)(b) of this section and the failure to contact the borrower occurred despite the due diligence of the beneficiary or authorized agent. Due diligence requires the following:
     (a) A beneficiary or authorized agent shall first attempt to contact a borrower by sending a first-class letter to the address of the property encumbered by the deed of trust that includes the toll-free telephone number made available by the department to find a department-certified housing counseling agency.
     (b)(i) After the letter has been sent, the beneficiary or authorized agent shall attempt to contact the borrower by telephone at least three times at different hours and on different days. Telephone calls must be made to the primary telephone number on file with the beneficiary or authorized agent.
     (ii) A beneficiary or authorized agent may attempt to contact a borrower using an automated system to dial borrowers if the telephone call, when answered, is connected to a live representative of the beneficiary or authorized agent.
     (iii) A beneficiary or authorized agent satisfies the telephone contact requirements of this subsection (5)(b) if the beneficiary or authorized agent determines, after attempting contact under this subsection (5)(b), that the borrower's primary telephone number and secondary telephone number or numbers on file, if any, have been disconnected or are not good contact numbers for the borrower.
     (c) If the borrower does not respond within fourteen days after the telephone call requirements of (b) of this subsection have been satisfied, the beneficiary or authorized agent shall send a certified letter, with return receipt requested, to the borrower at the address of the property encumbered by the deed of trust.
     (d) The beneficiary or authorized agent shall provide a means for the borrower to contact the beneficiary or authorized agent in a timely manner, including a toll-free telephone number or charge-free equivalent that will provide access to a live representative during business hours.
     (e) The beneficiary or authorized agent shall post a link on the home page of the beneficiary's or authorized agent's internet web site, if any, to the following information:
     (i) Options that may be available to borrowers who are unable to afford their mortgage payments and who wish to avoid foreclosure, and instructions to borrowers advising them on steps to take to explore those options;
     (ii) A list of financial documents borrowers should collect and be prepared to present to the beneficiary or authorized agent when discussing options for avoiding foreclosure;
     (iii) A toll-free telephone number or charge-free equivalent for borrowers who wish to discuss options for avoiding foreclosure with their beneficiary or authorized agent; and
     (iv) The toll-free telephone number or charge-free equivalent made available by the department to find a department-certified housing counseling agency.
     (6) Subsections (1) and (5) of this section do not apply if any of the following occurs:
     (a) The borrower has surrendered the property as evidenced by either a letter confirming the surrender or delivery of the keys to the property to the trustee, beneficiary, or authorized agent;
     (b) The borrower has contracted with a distressed home consultant as defined in RCW 61.34.020; or
     (c) The borrower has filed for bankruptcy, and the bankruptcy stays in place.
     (7) This section applies only to deeds of trust made from January 1, 2003, to December 31, 2007, inclusive, that are secured by residential real property and are for owner-occupied residences, and not secured by a debt incurred primarily for business, investment, or commercial purposes or secured by a guaranty. For purposes of this subsection, "owner-occupied" means that the residence is the principal residence of the borrower.
     (8) As used in this section:
     (a) "Borrower" includes a guarantor of a deed of trust who executed a promissory note secured by the deed of trust.
     (b) "Department" means the United States department of housing and urban development.
     (c) "Residential real property" means a one-to-four, single-family residence, condominium unit, residential cooperative unit, residential unit in any other type of planned unit development, or manufactured home.
     (d) "Seller-financed sales" means . . .
     (9) The form of declaration to be provided by the beneficiary or authorized agent as required under subsection (2) of this section must be in substantially the following form:

     "FORECLOSURE LOSS MITIGATION FORM

Please select applicable option(s) below.

     The undersigned beneficiary or authorized agent for the beneficiary hereby represents and declares that [check the applicable box and fill in any blanks so that the trustee can insert, on the beneficiary's behalf, the applicable declaration in the notice of default required under chapter 61.24 RCW]:
     (1) [ ] The beneficiary or beneficiary's authorized agent has contacted the borrower under, and has complied with, section 1 of this act (contact provision to "assess the borrower's financial ability to pay the debt secured by the deed of trust and explore options for the borrower to avoid foreclosure").
     (2) [ ] The beneficiary or beneficiary's authorized agent has exercised due diligence to contact the borrower as required in section 1(5) of this act and, after waiting fourteen days after the requirements in section 1 of this act were satisfied, the beneficiary or the beneficiary's authorized agent sent to the borrower(s), by certified mail, return receipt requested, the letter required under section 1 of this act.
     (3) [ ] The borrower has surrendered the secured property as evidenced by either a letter confirming the surrender or by delivery of the keys to the secured property to the beneficiary, the beneficiary's authorized agent or to the trustee.
     (4) [ ] Under section 1 of this act, the beneficiary or beneficiary's authorized agent has evidence in its file, and reasonably believes, that the borrower has contracted with a distressed home consultant as defined in RCW 61.34.020.
     (5) [ ] Under section 1 of this act, the beneficiary or the beneficiary's authorized agent has verified information that, on or before the date of this declaration, the borrower(s) has filed for bankruptcy, and there is no stay in place."

NEW SECTION.  Sec. 2   A new section is added to chapter 61.24 RCW to read as follows:
     (1) Upon posting a notice of sale under RCW 61.24.040, a trustee or authorized agent shall also post the following notice, in the manner required for posting the notice of sale on the property to be sold, and a trustee, beneficiary, or authorized agent shall mail at the same time in an envelope addressed to the "Resident of property subject to foreclosure sale" the following notice:

     "The foreclosure process has begun on this property, which may affect your right to continue to live in this property. Ninety days or more after the date of this notice, this property may be sold at foreclosure. If you are renting this property, the new property owner may either give you a new lease or rental agreement or provide you with a fifty-day eviction notice. You may wish to contact a lawyer or your local legal aid or housing counseling agency to discuss any rights that you may have."

     (2) This section applies only to deeds of trust secured by residential real property, as defined in section 1 of this act, and if the billing address for the mortgage note is different than the property address.

NEW SECTION.  Sec. 3   A new section is added to chapter 61.24 RCW to read as follows:
     (1) A tenant or subtenant in possession of a rental housing unit at the time the property is sold in foreclosure must be given fifty days' written notice before the tenant or subtenant may be removed from the property as prescribed in chapter 59.12 RCW.
     (2) This section does not apply if a party to the note secured by the deed of trust remains on the property as a tenant, subtenant, or occupant.
     (3) A tenant may be evicted for waste or nuisance . . ., subject to unlawful detainer under chapter 59.12 RCW.

NEW SECTION. Sec. 4 Sections 2 and 3 of this act apply only to the foreclosure of a nonowner-occupied one-to-four, single-family residence, condominium unit, residential cooperative unit, residential unit in any other type of planned unit development, or manufactured home in which title has been eliminated under RCW 65.20.040.

NEW SECTION.  Sec. 5   A new section is added to chapter 61.24 RCW to read as follows:
     (1) The failure of the grantor to bring a civil action to enjoin a foreclosure sale under this chapter may not be deemed a waiver of a claim for damages asserting:
     (a) Common law fraud and misrepresentation;
     (b) A violation of RCW 19.144.080; or
     (c) Failure of the trustee to materially comply with the provisions of this chapter.
     (2) The nonwaived claims listed under subsection (1) of this section may be (a) asserted in an unlawful detainer action brought by the lender against the grantor as a holdover tenant or (b) independently brought against a lender or trustee if a third party is the successful bidder at the foreclosure sale.
     (3) The nonwaived claims listed under subsection (1) of this section are subject to the following limitations:
     (a) The claim must be asserted or brought within two years from the date of the foreclosure sale;
     (b) The claim may not seek any remedy at law or in equity other than direct monetary damages, unless the property is owned by the beneficiary at the time the action is filed;
     (c) The claim may not affect the validity or finality of the foreclosure sale;
     (d) A grantor who files such a claim is prohibited from filing for record a lis pendens without prior permission of a court, as provided for in RCW 4.28.320, or any other document purporting to create a similar effect, related to the real property foreclosed upon;
     (e) The claim may not otherwise operate to encumber or cloud the title to the property that was subject to the foreclosure sale, except to the extent that a judgment on the claim in favor of the grantor may, consistent with RCW 4.56.190, become a judgment lien on real property then owned by the lender; and
     (f) The relief that may be granted for judgment upon the claim is limited to actual damages. However, if the grantor brings in the same civil action a claim for violation of chapter 19.86 RCW, arising out of the same alleged facts, relief under chapter 19.86 RCW is limited to actual damages, treble damages as provided for in RCW 19.86.090, and the costs of suit, including a reasonable attorney's fee.
     (4) This section applies only to foreclosures of an owner-occupied one-to-four, single-family residence, condominium unit, residential cooperative unit, residential unit in any other type of planned unit development, or manufactured home in which title has been eliminated under RCW 65.20.040, which is the grantor's principal place of residence.
     (5) This section does not apply to the foreclosure of a deed of trust used to secure a debt incurred for business, investment, or commercial purposes or to secure a guaranty.

Sec. 6   RCW 61.24.010 and 2008 c 153 s 1 are each amended to read as follows:
     (1) The trustee of a deed of trust under this chapter shall be:
     (a) Any domestic corporation incorporated under Title 23B, 30, 31, 32, or 33 RCW of which at least one officer is a Washington resident; or
     (b) Any title insurance company authorized to insure title to real property under the laws of this state, or its agents; or
     (c) Any attorney who is an active member of the Washington state bar association at the time the attorney is named trustee; or
     (d) Any professional corporation incorporated under chapter 18.100 RCW, any professional limited liability company formed under chapter 25.15 RCW, any general partnership, including limited liability partnerships, formed under chapter 25.04 RCW, all of whose shareholders, members, or partners, respectively, are either licensed attorneys or entities, provided all of the owners of those entities are licensed attorneys, or any domestic corporation wholly owned by any of the entities under this subsection (1)(d); or
     (e) Any agency or instrumentality of the United States government; or
     (f) Any national bank, savings bank, or savings and loan association chartered under the laws of the United States.
     (2) The trustee may resign at its own election or be replaced by the beneficiary. The trustee shall give prompt written notice of its resignation to the beneficiary. The resignation of the trustee shall become effective upon the recording of the notice of resignation in each county in which the deed of trust is recorded. If a trustee is not appointed in the deed of trust, or upon the resignation, incapacity, disability, absence, or death of the trustee, or the election of the beneficiary to replace the trustee, the beneficiary shall appoint a trustee or a successor trustee. Upon recording the appointment of a successor trustee in each county in which the deed of trust is recorded, the successor trustee shall be vested with all powers of an original trustee.
     (3) The trustee or successor trustee shall have no fiduciary duty or fiduciary obligation to the grantor or other persons having an interest in the property subject to the deed of trust.
     (4) The trustee or successor trustee shall act impartially between the borrower, grantor, and beneficiary.
     (5) The trustee or successor trustee has a duty of good faith to the beneficiary, grantor, or other persons having an interest in the property subject to the deed of trust.

Sec. 7   RCW 61.24.040 and 2008 c 153 s 3 are each amended to read as follows:
     A deed of trust foreclosed under this chapter shall be foreclosed as follows:
     (1) At least ninety days before the sale, the trustee shall:
     (a) Record a notice in the form described in ((~~RCW 61.24.040(1)~~))(f) of this subsection in the office of the auditor in each county in which the deed of trust is recorded;
     (b) To the extent the trustee elects to foreclose its lien or interest, or the beneficiary elects to preserve its right to seek a deficiency judgment against a borrower or grantor under RCW 61.24.100(3)(a), and if their addresses are stated in a recorded instrument evidencing their interest, lien, or claim of lien, or an amendment thereto, or are otherwise known to the trustee, cause a copy of the notice of sale described in ((~~RCW 61.24.040(1)~~))(f) of this subsection to be transmitted by both first-class and either certified or registered mail, return receipt requested, to the following persons or their legal representatives, if any, at such address:
     (i) The borrower and grantor;
     (ii) The beneficiary of any deed of trust or mortgagee of any mortgage, or any person who has a lien or claim of lien against the property, that was recorded subsequent to the recordation of the deed of trust being foreclosed and before the recordation of the notice of sale;
     (iii) The vendee in any real estate contract, the lessee in any lease, or the holder of any conveyances of any interest or estate in any portion or all of the property described in such notice, if that contract, lease, or conveyance of such interest or estate, or a memorandum or other notice thereof, was recorded after the recordation of the deed of trust being foreclosed and before the recordation of the notice of sale;
     (iv) The last holder of record of any other lien against or interest in the property that is subject to a subordination to the deed of trust being foreclosed that was recorded before the recordation of the notice of sale;
     (v) The last holder of record of the lien of any judgment subordinate to the deed of trust being foreclosed; and
     (vi) The occupants of property consisting solely of a single-family residence, or a condominium, cooperative, or other dwelling unit in a multiplex or other building containing fewer than five residential units, whether or not the occupant's rental agreement is recorded, which notice may be a single notice addressed to "occupants" for each unit known to the trustee or beneficiary;
     (c) Cause a copy of the notice of sale described in ((~~RCW 61.24.040(1)~~))(f) of this subsection to be transmitted by both first-class and either certified or registered mail, return receipt requested, to the plaintiff or the plaintiff's attorney of record, in any court action to foreclose a lien or other encumbrance on all or any part of the property, provided a court action is pending and a lis pendens in connection therewith is recorded in the office of the auditor of any county in which all or part of the property is located on the date the notice is recorded;
     (d) Cause a copy of the notice of sale described in ((~~RCW 61.24.040(1)~~)) (f) of this subsection to be transmitted by both first-class and either certified or registered mail, return receipt requested, to any person who has recorded a request for notice in accordance with RCW 61.24.045, at the address specified in such person's most recently recorded request for notice;
     (e) Cause a copy of the notice of sale described in ((~~RCW 61.24.040(1)~~)) (f) of this subsection to be posted in a conspicuous place on the property, or in lieu of posting, cause a copy of said notice to be served upon any occupant of the property;
     (f) The notice shall be in substantially the following form:

NOTICE OF TRUSTEE'S SALE

I.

NOTICE IS HEREBY GIVEN that the undersigned Trustee will on the . . . . day of . . . . . ., . . ., at the hour of . . . . o'clock . . . . M. at . . . . . . . . . . . . . . . . . . . . . . . . . . . . [street address and location if inside a building] in the City of . . . . . ., State of Washington, sell at public auction to the highest and best bidder, payable at the time of sale, the following described real property, situated in the County(ies) of . . . . . ., State of Washington, to-wit:

[If any personal property is to be included in the trustee's sale, include a description that reasonably identifies such personal property]

which is subject to that certain Deed of Trust dated . . . . . ., . . ., recorded . . . . . ., . . ., under Auditor's File No. . . . ., records of . . . . . . County, Washington, from . . . . . . . . ., as Grantor, to . . . . . . . . ., as Trustee, to secure an obligation in favor of . . . . . . . . ., as Beneficiary, the beneficial interest in which was assigned by . . . . . . . . ., under an Assignment recorded under Auditor's File No. . . . . [Include recording information for all counties if the Deed of Trust is recorded in more than one county.]

II.

No action commenced by the Beneficiary of the Deed of Trust is now pending to seek satisfaction of the obligation in any Court by reason of the Borrower's or Grantor's default on the obligation secured by the Deed of Trust.

[If there is another action pending to foreclose other security for all or part of the same debt, qualify the statement and identify the action.]

III.

The default(s) for which this foreclosure is made is/are as follows:

[If default is for other than payment of money, set forth the particulars]

Failure to pay when due the following amounts which are now in arrears:

          IV.

The sum owing on the obligation secured by the Deed of Trust is: Principal $ . . . . . ., together with interest as provided in the note or other instrument secured from the . . . . day of . . . . . ., . . ., and such other costs and fees as are due under the note or other instrument secured, and as are provided by statute.

          V.

The above-described real property will be sold to satisfy the expense of sale and the obligation secured by the Deed of Trust as provided by statute. The sale will be made without warranty, express or implied, regarding title, possession, or encumbrances on the . . . . day of . . . . . ., . . . The default(s) referred to in paragraph III must be cured by the . . . . day of . . . . . ., . . . (11 days before the sale date), to cause a discontinuance of the sale. The sale will be discontinued and terminated if at any time on or before the . . . . day of . . . . . ., . . ., (11 days before the sale date), the default(s) as set forth in paragraph III is/are cured and the Trustee's fees and costs are paid. The sale may be terminated any time after the . . . . day of . . . . . ., . . . (11 days before the sale date), and before the sale by the Borrower, Grantor, any Guarantor, or the holder of any recorded junior lien or encumbrance paying the entire principal and interest secured by the Deed of Trust, plus costs, fees, and advances, if any, made pursuant to the terms of the obligation and/or Deed of Trust, and curing all other defaults.

          VI.

A written notice of default was transmitted by the Beneficiary or Trustee to the Borrower and Grantor at the following addresses:

	. . . . . . . . . . . .
	. . . . . . . . . . . .
	. . . . . . . . . . . .

by both first-class and certified mail on the . . . . day of . . . . . ., . . ., proof of which is in the possession of the Trustee; and the Borrower and Grantor were personally served on the . . . . day of . . . . . ., . . ., with said written notice of default or the written notice of default was posted in a conspicuous place on the real property described in paragraph I above, and the Trustee has possession of proof of such service or posting.

          VII.

The Trustee whose name and address are set forth below will provide in writing to anyone requesting it, a statement of all costs and fees due at any time prior to the sale.

          VIII.

The effect of the sale will be to deprive the Grantor and all those who hold by, through or under the Grantor of all their interest in the above-described property.

          IX.

Anyone having any objection to the sale on any grounds whatsoever will be afforded an opportunity to be heard as to those objections if they bring a lawsuit to restrain the sale pursuant to RCW 61.24.130. Failure to bring such a lawsuit may result in a waiver of any proper grounds for invalidating the Trustee's sale.

[Add Part X to this notice if applicable under RCW 61.24.040(9)]

[Acknowledgment]

     (2) In addition to providing the borrower and grantor the notice of sale described in ((~~RCW 61.24.040~~)) subsection (1)(f) of this section, the trustee shall include with the copy of the notice which is mailed to the grantor, a statement to the grantor in substantially the following form:

NOTICE OF FORECLOSURE

     Pursuant to the Revised Code of Washington,

     Chapter 61.24 RCW

     The attached Notice of Trustee's Sale is a consequence of default(s) in the obligation to . . . . . ., the Beneficiary of your Deed of Trust and owner of the obligation secured thereby. Unless the default(s) is/are cured, your property will be sold at auction on the . . . . day of . . . . . ., . . .
     To cure the default(s), you must bring the payments current, cure any other defaults, and pay accrued late charges and other costs, advances, and attorneys' fees as set forth below by the . . . . day of . . . . . ., . . . [11 days before the sale date]. To date, these arrears and costs are as follows:

		Estimated amount
	Currently due	that will be due
	to reinstate	to reinstate
	on. . . . .	on. . . . .
	. . . . . .	. . . . . .
		(11 days before
		the date set
		for sale)
Delinquent payments
from. . . . . . ,
. . . , in the
amount of
$. . . . /mo.:	$. . . .	$. . . .
Late charges in
the total
amount of:	$. . . .	$. . . .
			Estimated
			Amounts
Attorneys' fees:	$. . . .	$. . . .
Trustee's fee:	$. . . .	$. . . .
Trustee's expenses:
(Itemization)
Title report	$. . . .	$. . . .
Recording fees	$. . . .	$. . . .
Service/Posting of Notices	$. . . .	$. . . .
Postage/Copying expense	$. . . .	$. . . .
Publication	$. . . .	$. . . .
Telephone charges	$. . . .	$. . . .
Inspection fees	$. . . .	$. . . .
. . . . . .	$. . . .	$. . . .
. . . . . .	$. . . .	$. . . .
TOTALS	$. . . .	$. . . .

     To pay off the entire obligation secured by your Deed of Trust as of the . . . . . day of . . . . . . you must pay a total of $. . . . . in principal, $. . . . . in interest, plus other costs and advances estimated to date in the amount of $. . . . . . From and after the date of this notice you must submit a written request to the Trustee to obtain the total amount to pay off the entire obligation secured by your Deed of Trust as of the payoff date.
     As to the defaults which do not involve payment of money to the Beneficiary of your Deed of Trust, you must cure each such default. Listed below are the defaults which do not involve payment of money to the Beneficiary of your Deed of Trust. Opposite each such listed default is a brief description of the action necessary to cure the default and a description of the documentation necessary to show that the default has been cured.

     You may reinstate your Deed of Trust and the obligation secured thereby at any time up to and including the . . . . day of . . . . . ., . . . [11 days before the sale date], by paying the amount set forth or estimated above and by curing any other defaults described above. Of course, as time passes other payments may become due, and any further payments coming due and any additional late charges must be added to your reinstating payment. Any new defaults not involving payment of money that occur after the date of this notice must also be cured in order to effect reinstatement. In addition, because some of the charges can only be estimated at this time, and because the amount necessary to reinstate or to pay off the entire indebtedness may include presently unknown expenditures required to preserve the property or to comply with state or local law, it will be necessary for you to contact the Trustee before the time you tender reinstatement or the payoff amount so that you may be advised of the exact amount you will be required to pay. Tender of payment or performance must be made to: . . . . . ., whose address is . . . . . ., telephone ( ) . . . . . . AFTER THE . . . . DAY OF . . . . . ., . . ., YOU MAY NOT REINSTATE YOUR DEED OF TRUST BY PAYING THE BACK PAYMENTS AND COSTS AND FEES AND CURING THE OTHER DEFAULTS AS OUTLINED ABOVE. The Trustee will respond to any written request for current payoff or reinstatement amounts within ten days of receipt of your written request. In such a case, you will only be able to stop the sale by paying, before the sale, the total principal balance ($ . . . . . .) plus accrued interest, costs and advances, if any, made pursuant to the terms of the documents and by curing the other defaults as outlined above.
     You may contest this default by initiating court action in the Superior Court of the county in which the sale is to be held. In such action, you may raise any legitimate defenses you have to this default. A copy of your Deed of Trust and documents evidencing the obligation secured thereby are enclosed. You may wish to consult a lawyer. Legal action on your part may prevent or restrain the sale, but only if you persuade the court of the merits of your defense.
     The court may grant a restraining order or injunction to restrain a trustee's sale pursuant to RCW 61.24.130 upon five days notice to the trustee of the time when, place where, and the judge before whom the application for the restraining order or injunction is to be made. This notice shall include copies of all pleadings and related documents to be given to the judge. Notice and other process may be served on the trustee at:

     If you do not reinstate the secured obligation and your Deed of Trust in the manner set forth above, or if you do not succeed in restraining the sale by court action, your property will be sold. The effect of such sale will be to deprive you and all those who hold by, through or under you of all interest in the property;
     (3) In addition, the trustee shall cause a copy of the notice of sale described in ((~~RCW 61.24.040~~)) subsection (1)(f) of this section (excluding the acknowledgment) to be published in a legal newspaper in each county in which the property or any part thereof is situated, once on or between the thirty-fifth and twenty-eighth day before the date of sale, and once on or between the fourteenth and seventh day before the date of sale;
     (4) On the date and at the time designated in the notice of sale, the trustee or its authorized agent shall sell the property at public auction to the highest bidder. The trustee may sell the property in gross or in parcels as the trustee shall deem most advantageous;
     (5) The place of sale shall be at any designated public place within the county where the property is located and if the property is in more than one county, the sale may be in any of the counties where the property is located. The sale shall be on Friday, or if Friday is a legal holiday on the following Monday, and during the hours set by statute for the conduct of sales of real estate at execution;
     (6) The trustee has no obligation to, but may, for any cause the trustee deems advantageous, continue the sale for a period or periods not exceeding a total of one hundred twenty days by (a) a public proclamation at the time and place fixed for sale in the notice of sale and if the continuance is beyond the date of sale, by giving notice of the new time and place of the sale by both first class and either certified or registered mail, return receipt requested, to the persons specified in ((~~RCW 61.24.040~~)) subsection (1)(b)(i) and (ii) of this section to be deposited in the mail (i) not less than four days before the new date fixed for the sale if the sale is continued for up to seven days; or (ii) not more than three days after the date of the continuance by oral proclamation if the sale is continued for more than seven days, or, alternatively, (b) by giving notice of the time and place of the postponed sale in the manner and to the persons specified in ((~~RCW 61.24.040~~)) subsection (1)(b), (c), (d), and (e) of this section and publishing a copy of such notice once in the newspaper(s) described in ((~~RCW 61.24.040~~)) subsection (3) of this section, more than seven days before the date fixed for sale in the notice of sale. No other notice of the postponed sale need be given;
     (7) The purchaser shall forthwith pay the price bid and on payment the trustee shall execute to the purchaser its deed; the deed shall recite the facts showing that the sale was conducted in compliance with all of the requirements of this chapter and of the deed of trust, which recital shall be prima facie evidence of such compliance and conclusive evidence thereof in favor of bona fide purchasers and encumbrancers for value, except that these recitals shall not affect the lien or interest of any person entitled to notice under ((~~RCW 61.24.040~~)) subsection (1) of this section, if the trustee fails to give the required notice to such person. In such case, the lien or interest of such omitted person shall not be affected by the sale and such omitted person shall be treated as if such person was the holder of the same lien or interest and was omitted as a party defendant in a judicial foreclosure proceeding;
     (8) The sale as authorized under this chapter shall not take place less than one hundred ninety days from the date of default in any of the obligations secured;
     (9) If the trustee elects to foreclose the interest of any occupant or tenant of property comprised solely of a single-family residence, or a condominium, cooperative, or other dwelling unit in a multiplex or other building containing fewer than five residential units, the following notice shall be included as Part X of the Notice of Trustee's Sale:

          X.

          NOTICE TO OCCUPANTS OR TENANTS

The purchaser at the trustee's sale is entitled to possession of the property on the 20th day following the sale, as against the grantor under the deed of trust (the owner) and anyone having an interest junior to the deed of trust, including occupants ((~~and~~)) who are not tenants. After the 20th day following the sale the purchaser has the right to evict occupants ((~~and~~)) who are not tenants by summary proceedings under ((~~the unlawful detainer act,~~)) chapter 59.12 RCW. For tenant-occupied property, the purchaser shall provide a tenant with written notice in accordance with section 2 of this act;
     (10) Only one copy of all notices required by this chapter need be given to a person who is both the borrower and the grantor. All notices required by this chapter that are given to a general partnership are deemed given to each of its general partners, unless otherwise agreed by the parties.

Sec. 8 RCW 61.24.060 and 1998 c 295 s 8 are each amended to read as follows:
The purchaser at the trustee's sale shall be entitled to possession of the property on the twentieth day following the sale, as against the grantor under the deed of trust and anyone having an interest junior to the deed of trust, including occupants ((~~and~~)) who are not tenants, who were given all of the notices to which they were entitled under this chapter. For tenant-occupied property, the purchaser shall provide a tenant with written notice in accordance with section 2 of this act. The purchaser shall also have a right to the summary proceedings to obtain possession of real property provided in chapter 59.12 RCW.

NEW SECTION. Sec. 9 A new section is added to chapter 59.12 RCW to read as follows:
An unlawful detainer action, commenced as a result of a trustee's sale under chapter 61.24 RCW, must comply with the requirements of RCW 61.24.040 and 61.24.060.

NEW SECTION. Sec. 10 If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION. Sec. 11 Sections 1 through 4, 7, and 8 of this act expire December 31, 2012.

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