VOLUNTARY MODIFICATION OF DEBT SECURED BY REAL

PROPERTY (a) Definition of Mortgage Creditor and Temporary or Trial Mortgage Modification. For purposes of this rule, the term “mortgage creditor” includes any creditor secured by a mortgage, deed of trust, or land sale contract on real property. For purposes of this rule, the term “temporary or trial mortgage modification” means a short term modification offered by a mortgage creditor as a precursor to a permanent mortgage modification (b) Negotiation Does Not Violate Stay. A mortgage creditor is authorized to negotiate with the debtor for a modification of the secured obligation at any time during the pendency of the debtor’s case.

Any such modification is voluntary on the part of the mortgage creditor and the debtor. If the debtor is represented by counsel, that counsel may consent to allow the mortgage creditor to communicate directly with the debtor. A mortgage creditor’s contact with the debtor and/or the debtor’s counsel for the purpose of negotiating a loan modification shall not be considered a violation of the automatic stay imposed by 11 U.S.C § 362. If a debtor consents in writing (through counsel if the debtor is represented), participation by a secured creditor in a mediation, either pursuant to state law or by agreement of the parties, shall not constitute a violation of the automatic stay imposed by 11 U.S.C § 362.

(c) Approval of a Temporary or Trial Mortgage Modification in a Chapter 13 Case. A debtor may make a written request directly to the chapter 13 trustee for authority to enter a temporary or trial modification of a debt secured by real property. The debtor’s request shall include a copy of the proposed modification agreement. If the debtor was delinquent on the mortgage at the petition date, the trustee is authorized to and shall disburse the modified mortgage payments from debtor’s plan payments whether or not the court has confirmed a plan.

The debtor shall make plan payments in an amount sufficient (including the trustee’s fee) so that the trustee can timely disburse the modified mortgage payments. A debtor receiving the chapter 13 trustee’s approval to enter into a modification under this section does not need to also obtain a court order authorizing the modification. If the chapter 13 trustee denies the debtor’s request to enter a modification under this section, the debtor is not precluded from submitting the request to the court pursuant to Local Bankruptcy Rule 9013-1(d)(2)(F). (d) Approval of a Permanent Mortgage Modification in a Chapter 13 Case.

A debtor seeking approval to enter a permanent modification of a debt secured by real property shall obtain the court’s prior approval on the debtor’s own motion or that of the mortgage creditor. The moving party shall include a copy of the modification agreement with the request, in compliance with Fed. R. Bankr. P. 9037. Local Rules W.D. Wash. Bankr. Effective Dec.

1, 2023 RULE 4001-3. CASH COLLATERAL (a) Financing Guidelines. The Guidelines for Cash Collateral and Financing Stipulations (Appendix A to these Local Bankruptcy Rules, as may be modified from time to time and posted on the court’s website) apply to all motions for approval of such stipulations, interim and final, and all motions for approval thereof must contain the certification of counsel required by the Guidelines. (b) Special Notice to Taxing Agencies.

Notice of all motions seeking approval of use of cash collateral or financing orders must be served on the United States Attorney’s Office, Attn: Bankruptcy Assistant, 700 Stewart Street, Room 5220, Seattle, Washington 98101, and the Attorney General for the State of Washington, Bankruptcy and Collections Unit at 800 Fifth Avenue, 20th floor, Seattle, Washington 98104. The notice required by this rule is in addition to any other applicable notice and service requirements. (c) (d) Scheduling Emergency Hearings. Local Bankruptcy Rule 9013-1(d)(2)(E) applies.

Motion Practice. Local Bankruptcy Rule 9013-1 applies.