District of Columbia

Quick Facts

–  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

In Washington D.C., lenders may foreclose on deeds of trusts in  default using the non-judicial foreclosure process.

Non-Judicial Foreclosure

The non-judicial process of foreclosure is used when a power of  sale clause exists in a mortgage or deed of trust. A “power of sale” clause is the  clause in a deed of trust or mortgage, in which the borrower pre-authorizes the  sale of property to pay off the balance on a loan in the event of the their default.  In deeds of trust or mortgages where a power of sale exists, the power given to  the lender to sell the property may be executed by the lender or their representative,  typically referred to as the trustee. Regulations for this type of foreclosure process  are outlined below in the “Power of Sale Foreclosure Guidelines”.

Power of Sale Foreclosure Guidelines

If the deed of trust or mortgage contains a power of sale clause  and specifies the time, place and terms of sale, then the specified procedure must  be followed.

If the terms of the sale are not established in the deed of trust,  the lender, or his representative, must obtain a court order specifying the terms  of the sale.

However, no foreclosure sale may take place unless the lender  gives written notice, by certified mail (return receipt requested), to the borrower  at his last known address. This notice must also be sent to the Mayor of the District  of Columbia, or his designated agent. Both notices must be sent at least thirty  (30) days prior to the sale, with the thirty (30) day period beginning on the day  the notice is received by the Mayor. This notice must be given in addition to any  notices set forth by the court, the mortgage or the deed of trust.

In Washington D.C., lenders may obtain a deficiency judgment against  the borrower for the difference between the foreclosure sale amount and the amount  remaining on the original loan. The borrower has no rights of redemption.

More information on Washington D.C.’s foreclosure laws.

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