Washington DC Foreclosure Laws

In the District of Columbia, most of the foreclosures are non-judicially handled while some of them are also handled by the court. Most of the Washington DC foreclosures are handled out of court because the deed of trust has a clause that states that the lender will be allowed to sell the foreclosed property if the borrower defaults on the mortgage payments. Once the borrower defaults, the lender has the right to start the foreclosure proceedings by sending a notice of sale to the borrower. The notice of sale will clearly outline that the borrower has violated the terms of the deed of trust or mortgage.

The borrower will get the opportunity to reinstate the loan and needs to pay it back 5 days prior to the foreclosure sale. He/she will have to also pay late charges and other costs apart from the amount he owes. The normal time period for an out-of-court or non-judicial foreclosure in the District of Columbia is 47 days.

To facilitate the District of Columbia foreclosure proceedings, the lender will have to first send a notice of foreclosure through certified mail to the borrower or the owner of the property. This mail has to be sent at least 30 days before the date of the sale. The lender will also have to record the sale notice at the office of the recorder of deeds and needs to mail a copy to the mayor within the advised timeframe. Lenders will also have to inform all the lien holders regarding the sale.

The deed of trust can include particulars like date of sale, time and the venue of the sale. The lender can also acquire a court order, which will specify all the terms for the sale. It is the responsibility of the lender to advertise the requirements mentioned in the deed of trust. If there are no requirements mentioned then the lender will have to advertise the District of Columbia foreclosure sale either in The Washington Times or The Washington Post at least 5 times prior to the date of sale.

The District of Columbia foreclosure sale is overseen by a licensed auctioneer and it normally takes place in the auctioneer’s office. If due to any reason the trustee has to postpone the sale, then it is the trustee’s responsibility to take out a new notice of sale. Once the sale/auction is over, the deed of the trust is recorded. The borrower will not be able to redeem the property after the deed of trust is recorded.

If you need more information about Washington DC foreclosure laws, you should contact a foreclosure lawyer, or contact us so we can recommend one for you.