Washington D.C. Foreclosure Process and Laws
Quick Facts About the Washington D.C. Foreclosure Process
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
Lenders in Washington D.C. may foreclose mortgages in default through a non-judicial foreclosure process.
The non-judicial foreclosure process is used when the power of sale clause is present in a mortgage. This means that the borrower has pre-authorized the sale of the property to pay off his debts in the event of a default. The lender or his representative has the power to sell the property at an auction to the highest bidder following the process outlined in the Power of Sale Foreclosure Guidelines.”
Power of Sale Foreclosure Guidelines
If the power of sale clause specifies the terms of sale, these must be followed. If not, the lender or his representative must obtain a court order which states the terms of sale.
A notice of intetnt to foreclose must be sent to the borrower at his last known address, as well as to the Mayor of the District of Columbia, or his designated agent. This must be sent at least 30 days before the day of sale, with the first day being the day the Mayor received the notice. This must be given in addition to the other notices that are ordered by the court.
In washington D.C, the borrower has no rights of redemption, while the lender may file for a deficiency judgement for the difference between the foreclosure sale price and the balance left on the original loan.
Foreclosure Avoidance Counseling
HUD-approved housing counseling agencies are available to provide you with the information and assistance you need to avoid foreclosure. As part of President Obama’s comprehensive Homeowner Affordability and Stability Plan (HASP), you may be eligible for a special Making Home Affordable loan modification or refinance, to reduce your monthly payments and help you keep your home.
If you need help understanding the Making Home Affordable programs, you can use this search tool to find a counseling agency in your area that will provide you with free foreclosure prevention services. If you are eligible for the loan modification or refinance program, the counselor will work with you to compile an intake package for your servicer.
Foreclosure prevention counseling services are provided free of charge by nonprofit housing counseling agencies working in partnership with the Federal Government. These agencies are funded, in part, by HUD and NeighborWorks® America. There is no need to pay a private company for these services.
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