Monday, October 6, 2025

2025 Washington Foreclosure Prevention Act now includes Homeowners Association protection

Washington’s 2025 Foreclosure Prevention Act: New Protections for HOA and Condo Owners

October 2025 | Weitz Commercial Legal & Real Estate Insights

Washington has passed a sweeping Foreclosure Prevention Act (Senate Bill 5686), aimed at giving homeowners and condo owners more options before losing their properties.

While much of the bill expands the state’s foreclosure mediation program for mortgage borrowers, one of the most significant—and often overlooked—changes is how it now affects homeowners’ associations (HOAs) and condominium associations.

Expanded Mediation Rights for HOA Foreclosures

Beginning January 1, 2026, unit owners who fall behind on association dues or assessments will have the right to participate in Washington’s Foreclosure Mediation Program—the same process available to mortgage borrowers.

This means that before an HOA or condo association can complete a foreclosure for unpaid assessments:

  • The unit owner must be given a chance to “meet and confer” with the association to discuss repayment or settlement options.

  • If that fails, the owner may be referred to the state-run mediation program, where both parties must appear before a neutral mediator.

  • During mediation, the association is required to provide detailed records—such as account ledgers, governing documents, and any liens—so the process is transparent and documented.

  • Foreclosure actions are paused while mediation is pending, giving owners valuable time to resolve their debt.

Limits on HOA Fees and Collection Practices

The new law also places restrictions on the costs an association can charge once a homeowner becomes delinquent.

Only limited printing, mailing, administrative, and late fees may be added before a foreclosure can proceed, and all notices must follow specific timing and disclosure rules.

These changes are designed to prevent “runaway” legal and administrative fees from quickly outpacing the original debt—a common problem in HOA foreclosures.

Weitz Take

This doesn't change much for mortgage defaults, but huge for HOA defaults. In my opinion, HOAs have had far too much power for years often taking small defaults and turning them into large obligations that many Homeowners can't overcome. This is a good law to hold them accountable, but will also be a strain on HOAs that don't have adequate capital reserves for increased legal fees. 

For more information on Foreclosure Fairness Act Attorneys, you can reach me directly below. 

Scott Weitz
DC Legal, PLLC
Scott@dcseattle.com