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:
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The unit owner must be given a chance to “meet and confer” with the association to discuss repayment or settlement options.
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If that fails, the owner may be referred to the state-run mediation program, where both parties must appear before a neutral mediator.
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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.
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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.