Washington DC Foreclosure Laws

While Washington DC foreclosure laws allow for both judicial and non-judicial foreclosure proceedings, judicial foreclosures are relatively rare. Most foreclosures in the state take under two months to complete.

Initiating Foreclosure in Washington DC

Most mortgages and deeds of trust in Washington DC contain a power of sale clause which allows for foreclosure without the court system. For this reason, most foreclosures in the state are non-judicial. To initiate this type of foreclosure, the lender must send the debtor a notice, informing the debtor that the deed of trust or mortgage is in default. Until five days before the foreclosure auction, the property is in pre-foreclosure and the debtor can stop the foreclosure by repaying the default amount as well as any additional costs. However, in Washington DC, this redemption is only allowed each debtor once every two years. If a debtor faces foreclosure more often, this grace period may not apply.

The Foreclosure Sale in Washington DC

A minimum of thirty days before the foreclosure auction, the lender must send a notice of foreclosure sale to the debtor and the owner of the property (if they are not the same person) via certified mail. The notice must also be recorded with the local recorder of deeds. As well, the notice must be mailed to the mayor or to an agent of the mayor. Most lenders will also inform all junior lien holders of the upcoming auction. Unless the mortgage or deed of trust has specific requirements to the contrary, lender will generally publish the notice five times in The Washington Times or The Washington Post newspapers before the auction date. If the sale must be postponed for any reason, a notice of sale must be drawn up again and must be sent and published anew, as with the first notice of sale.

Unless the mortgage or deed of trust has indicated a specific location and time of auction, court order needs to be obtained to delineate sale terms. Most typically, the foreclosure sale will take place at an auctioneer's office and will be overseen by a licensed auctioneer. After the auction, the deed is recorded. There is no redemption period after a foreclosure sale in Washington DC.