Washington, D.C. Foreclosure Law
- Judicial Foreclosure Available: No
- Non-Judicial Foreclosure Available: Yes
- Primary Security Instruments: Deed of Trust
- Timeline: Usually 60 days
- Right of Redemption1: No
- Deficiency Judgments2 Allowed: Yes
Lenders in Washington D.C. may foreclose on deeds of trusts in default using a non-judicial foreclosure process.
Non-Judicial Foreclosure
If a power of sale clause exists in the deed of trust or mortgage document, a non-judicial process of foreclosure is used. This allows the lender to sell the property and pay off the balance of the loan in the event the homeowner defaults. The power to sell may be completed by the lender or their representative in situations where a power of sale exists. The procedure for this type of foreclosure process is explained in the "Power of Sale Foreclosure Procedure" listed below.
Power of Sale Foreclosure Procedure
The lender is required to obtain a court order specifying the terms of the sale if they are not outlined in the deed of trust instrument.
Before a foreclosure sale can take place and at least thirty (30) days prior to the sale, the lender must provide written notice, by certified mail, to the borrower. The notice is also sent to the Mayor of the District of Columbia or their designated agent. These notices are given in addition to any notices set forth by the court, the mortgage or the deed of trust. The sale is held by public auction to the highest bidder.
The borrower has no rights of redemption. 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.
1 A borrower’s right to reacquire property lost due to a foreclosure.
2 A personal judgment against the borrower for the remaining balance on the loan after a foreclosure sale.
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