District of Columbia Foreclosure Law Summary
Stop Washington DC Foreclosure
Quick Facts
- Judicial Foreclosure Available: No
- Non-Judicial Foreclosure Available: Yes
- Primary Security Instruments: Deed of Trust
- Timeline: Typically 60 days
- Right of Redemption: No
- Deficiency Judgments Allowed: Yes
In Washington D.C., lenders may foreclose on deeds of trusts in
default using the non-judicial foreclosure process.
Non-Judicial Foreclosure
The non-judicial process of foreclosure is used when a power of
sale clause exists in a mortgage or deed of trust. A "power of sale" clause is the
clause in a deed of trust or mortgage, in which the borrower pre-authorizes the
sale of property to pay off the balance on a loan in the event of the their default.
In deeds of trust or mortgages where a power of sale exists, the power given to
the lender to sell the property may be executed by the lender or their representative,
typically referred to as the trustee. Regulations for this type of foreclosure process
are outlined below in the "Power of Sale Foreclosure Guidelines".
Power of Sale Foreclosure Guidelines
If the deed of trust or mortgage contains a power of sale clause
and specifies the time, place and terms of sale, then the specified procedure must
be followed.
If the terms of the sale are not established in the deed of trust,
the lender, or his representative, must obtain a court order specifying the terms
of the sale.
However, no foreclosure sale may take place unless the lender
gives written notice, by certified mail (return receipt requested), to the borrower
at his last known address. This notice must also be sent to the Mayor of the District
of Columbia, or his designated agent. Both notices must be sent at least thirty
(30) days prior to the sale, with the thirty (30) day period beginning on the day
the notice is received by the Mayor. This notice must be given in addition to any
notices set forth by the court, the mortgage or the deed of trust.
In Washington D.C., lenders may obtain a deficiency judgment against
the borrower for the difference between the foreclosure sale amount and the amount
remaining on the original loan. The borrower has no rights of redemption.
More information on Washington D.C.'s foreclosure laws.
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