For homeowners facing foreclosure in the District of Columbia, the following is a summary of the state’s foreclosure laws:
Foreclosures in the District of Columbia can be judicial, meaning the bank must file a lawsuit in court in order to foreclose.
Foreclosures in the District of Columbia can also be nonjudicial but a court must confirm the sale.
Notice of the Foreclosure
In the District of Columbia, the bank must give the following notices.
The bank must send a notice of default to the homeowner, which includes the amount required to cure the default and reinstate the loan.
Along with the notice of default, the bank must provide information on mediation and housing counseling services, including an application for loss mitigation programs, as well as a mediation election form with envelopes addressed to the bank and the mediation administrator. The homeowner must return the mediation election form to the mediation administrator and the bank no later than 30 days from the mail date.
If the homeowner does not choose mediation, the mediation administrator will issue a mediation certificate, which allows the sale. The bank must issue and send a notice of intention to foreclose to the homeowner and a copy to the Mayor of D.C. 30 days before the sale. The 30-day period begins on the date the Mayor receives the notice. D.C.
The terms regarding notice of the sale are usually stated in the mortgage or deed of trust. The deed of trust requires them to publicly advertise the sale. The trustee usually publishes a notice of the sale in a public newspaper or online.
District of Columbia Foreclosure Protections
District of Columbia law provides protections in accordance with the federal Service Members Civil Relief Act.
Reinstatement and Redemption
Homeowners in the District of Columbia have until five business days before the sale to cure the default and reinstate the loan. The homeowner cannot reinstate more than once in any two consecutive calendar years.
In the District of Columbia, the homeowner does not have the right to redeem the home after the foreclosure sale.
In the District of Columbia, the bank may sue the homeowner for a deficiency judgment after a nonjudicial foreclosure.
In a judicial foreclosure, the bank may request a deficiency judgement from the court for a deficiency judgment as part of the foreclosure lawsuit.
If the former homeowners don’t leave the home after a District of Columbia foreclosure, the bank may evict as a the foreclosure action. For information regarding how to avoid foreclosure in District of Columbia, visit HUD.gov.