Washington D.C. Foreclosure Help – Stop Foreclosure in Washington D.C.

 


Finding Foreclosure Help in Washington D.C.

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.

Washington D.C. Foreclosure Laws Summary

Quick Facts:

  • Judicial foreclosure process is not available.
  • Non-judicial foreclosure process is available.
  • The primary security instruments are deeds of trust.
  • The timeline can vary by process, which typically takes 60 days.
  • The borrower has no rights of redemption.
  • The lender may sue for deficiency judgements.

The non-judicial process may be used by lender to foreclose on mortgages in default in Washington D.C.

Non-Judicial Foreclosure
This process is used when there is a power of sale clause included in a mortgage deal. This clause states that the borrower has allowed the selling of the property in the event of their default. When this happens, the lender or a trustee may sell the property at an auction following the guidelines stated below.

Power of Sale Foreclosure Guidelines
If the power of sale clause does not specify the terms of the foreclosure sale, then it must be carried out as follows:

A notice of intent to foreclose must be sent to the borrower and to the Mayor of the District of Columbia. This letter must be sent at least 30 days before the sale is to take place, with the first day being the day that the mayor received the notice. In addition to this letter, other notices must be sent out as ordered by the court.

Deficiency judgements may be filed but are limited to the difference between the balance left on the loan and the price of the property at the foreclosure sale. Borrowers have no rights of redemption.