BILL REQ. #: S-3354.1
State of Washington | 62nd Legislature | 2012 Regular Session |
Read first time 01/13/12. Referred to Committee on Judiciary.
AN ACT Relating to modifying the penalty for false swearing by a beneficiary; amending RCW 61.24.030, 9.38.020, and 9A.72.040; and prescribing penalties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1 RCW 61.24.030 and 2011 c 58 s 4 are each amended to read
as follows:
It shall be requisite to a trustee's sale:
(1) That the deed of trust contains a power of sale;
(2) That the deed of trust contains a statement that the real
property conveyed is not used principally for agricultural purposes;
provided, if the statement is false on the date the deed of trust was
granted or amended to include that statement, and false on the date of
the trustee's sale, then the deed of trust must be foreclosed
judicially. Real property is used for agricultural purposes if it is
used in an operation that produces crops, livestock, or aquatic goods;
(3) That a default has occurred in the obligation secured or a
covenant of the grantor, which by the terms of the deed of trust makes
operative the power to sell;
(4) That no action commenced by the beneficiary of the deed of
trust is now pending to seek satisfaction of an obligation secured by
the deed of trust in any court by reason of the grantor's default on
the obligation secured: PROVIDED, That (a) the seeking of the
appointment of a receiver shall not constitute an action for purposes
of this chapter; and (b) if a receiver is appointed, the grantor shall
be entitled to any rents or profits derived from property subject to a
homestead as defined in RCW 6.13.010. If the deed of trust was granted
to secure a commercial loan, this subsection shall not apply to actions
brought to enforce any other lien or security interest granted to
secure the obligation secured by the deed of trust being foreclosed;
(5) That the deed of trust has been recorded in each county in
which the land or some part thereof is situated;
(6) That prior to the date of the notice of trustee's sale and
continuing thereafter through the date of the trustee's sale, the
trustee must maintain a street address in this state where personal
service of process may be made, and the trustee must maintain a
physical presence and have telephone service at such address;
(7)(a)(i) That, for residential real property, before the notice of
trustee's sale is recorded, transmitted, or served, the trustee shall
have proof that the beneficiary is the owner of any promissory note or
other obligation secured by the deed of trust.
(ii) A declaration by the beneficiary made under the penalty of
perjury stating that the beneficiary is the actual holder of the
promissory note or other obligation secured by the deed of trust shall
be sufficient proof as required under this subsection. A violation of
this subsection (7)(a)(ii) is a class C felony as provided in RCW
9A.20.020 and 9A.20.021.
(b) Unless the trustee has violated his or her duty under RCW
61.24.010(4), the trustee is entitled to rely on the beneficiary's
declaration as evidence of proof required under this subsection.
(c) This subsection (7) does not apply to association beneficiaries
subject to chapter 64.32, 64.34, or 64.38 RCW;
(8) That at least thirty days before notice of sale shall be
recorded, transmitted or served, written notice of default shall be
transmitted by the beneficiary or trustee to the borrower and grantor
at their last known addresses by both first-class and either registered
or certified mail, return receipt requested, and the beneficiary or
trustee shall cause to be posted in a conspicuous place on the
premises, a copy of the notice, or personally served on the borrower
and grantor. This notice shall contain the following information:
(a) A description of the property which is then subject to the deed
of trust;
(b) A statement identifying each county in which the deed of trust
is recorded and the document number given to the deed of trust upon
recording by each county auditor or recording officer;
(c) A statement that the beneficiary has declared the borrower or
grantor to be in default, and a concise statement of the default
alleged;
(d) An itemized account of the amount or amounts in arrears if the
default alleged is failure to make payments;
(e) An itemized account of all other specific charges, costs, or
fees that the borrower, grantor, or any guarantor is or may be obliged
to pay to reinstate the deed of trust before the recording of the
notice of sale;
(f) A statement showing the total of (d) and (e) of this
subsection, designated clearly and conspicuously as the amount
necessary to reinstate the note and deed of trust before the recording
of the notice of sale;
(g) A statement that failure to cure the alleged default within
thirty days of the date of mailing of the notice, or if personally
served, within thirty days of the date of personal service thereof, may
lead to recordation, transmittal, and publication of a notice of sale,
and that the property described in (a) of this subsection may be sold
at public auction at a date no less than one hundred twenty days in the
future;
(h) A statement that the effect of the recordation, transmittal,
and publication of a notice of sale will be to (i) increase the costs
and fees and (ii) publicize the default and advertise the grantor's
property for sale;
(i) A statement that the effect of the sale of the grantor's
property by the trustee will be to deprive the grantor of all their
interest in the property described in (a) of this subsection;
(j) A statement that the borrower, grantor, and any guarantor has
recourse to the courts pursuant to RCW 61.24.130 to contest the alleged
default on any proper ground;
(k) In the event the property secured by the deed of trust is
owner-occupied residential real property, a statement, prominently set
out at the beginning of the notice, which shall state as follows:
"You should take care to protect your interest in your home. This
notice of default (your failure to pay) is the first step in a process
that could result in you losing your home. You should carefully review
your options. For example:
Can you pay and stop the foreclosure process?
Do you dispute the failure to pay?
Can you sell your property to preserve your equity?
Are you able to refinance this loan or obligation with a new loan
or obligation from another lender with payments, terms, and fees that
are more affordable?
Do you qualify for any government or private homeowner assistance
programs?
Do you know if filing for bankruptcy is an option? What are the
pros and cons of doing so?
Do not ignore this notice; because if you do nothing, you could
lose your home at a foreclosure sale. (No foreclosure sale can be held
any sooner than ninety days after a notice of sale is issued and a
notice of sale cannot be issued until thirty days after this notice.)
Also, if you do nothing to pay what you owe, be careful of people who
claim they can help you. There are many individuals and businesses
that watch for the notices of sale in order to unfairly profit as a
result of borrowers' distress.
You may feel you need help understanding what to do. There are a
number of professional resources available, including home loan
counselors and attorneys, who may assist you. Many legal services are
lower-cost or even free, depending on your ability to pay. If you
desire legal help in understanding your options or handling this
default, you may obtain a referral (at no charge) by contacting the
county bar association in the county where your home is located. These
legal referral services also provide information about lower-cost or
free legal services for those who qualify. You may contact the
Department of Financial Institutions or the statewide civil legal aid
hotline for possible assistance or referrals"; and
(l) In the event the property secured by the deed of trust is
residential real property, the name and address of the owner of any
promissory notes or other obligations secured by the deed of trust and
the name, address, and telephone number of a party acting as a servicer
of the obligations secured by the deed of trust; and
(9) That, for owner-occupied residential real property, before the
notice of the trustee's sale is recorded, transmitted, or served, the
beneficiary has complied with RCW 61.24.031 and, if applicable, RCW
61.24.163.
Sec. 2 RCW 9.38.020 and 2000 c 250 s 9A-821 are each amended to
read as follows:
Every person who shall maliciously or fraudulently execute or file
for record any instrument, or put forward any claim, by which the right
or title of another to any real or personal property is, or purports to
be transferred, encumbered or clouded, shall be guilty of a gross
misdemeanor, except for a violation of RCW 61.24.030(7)(a)(ii) which is
a class C felony as provided in RCW 9A.020.020 and 9A.20.021.
Sec. 3 RCW 9A.72.040 and 2011 c 336 s 392 are each amended to
read as follows:
(1) A person is guilty of false swearing if he or she makes a false
statement, which he or she knows to be false, under an oath required or
authorized by law.
(2) False swearing is a gross misdemeanor, except for false
swearing under RCW 61.24.030(7)(a)(ii) which is a class C felony as
provided in RCW 9A.20.020 and 9A.20.021.