Forfeiture vs Foreclosure?

Sometimes it's called "deed in lieu" of foreclosure. You can do one or the other, not both. If you sign the property over to the lender (forfeiture), they own it and you have given up all your rights to the property, and you must move out.

Foreclosure is when you don't pay, they initiate the legal process to take over the property. You can live there until they get a court ordered eviction. But once the foreclosure is complete and they own the house.

You either forfeit or let it go into foreclosure, not both.

one of those things that licensees can easily forget. I had

forgotten this entirely. From Washington State Dept of RE.

3) "Declaration of forfeiture" means the notice described in RCW 61.30.070(2).

(4) "Forfeit" or "forfeiture" means to cancel the purchaser's rights under a real estate contract and to terminate all right, title, and interest in the property of the purchaser and of persons claiming by or through the purchaser, all to the extent provided in this chapter, because of a breach of one or more of the purchaser's obligations under the contract. A judicial foreclosure of a real estate contract as a mortgage shall not be considered a forfeiture under this chapter.

(5) "Notice of intent to forfeit" means the notice described in RCW 61.30.070(1).

Foreclosure is what the lender goes through to

claim the property when a borrower does not make

payments as agreed.