District of Columbia Foreclosure Law
Trustee Foreclosure Sales Only
Pre-foreclosure Period
While court foreclosures occasionally occur in the District
of Columbia, most foreclosures are out-of-court proceedings.
This is because the mortgage or deed of trust usually contains a
clause that allows the lender the right to sell the property.
Once a borrower is in default, the lender starts foreclosure
proceedings after sending a notice to the borrower that the
terms of the mortgage or deed of trust have been violated. The
borrower can reinstate the loan up to five days before to the
foreclosure sale by paying the default amount, including late
charges and costs. This can occur no more than once in any two
years. The typical timeline for an out-of-court foreclosure is
at least 47 days.
Notice of Sale / Auction
A lender must send a notice of foreclosure sale by certified
mail to the owner of the property at least 30 days prior to the
sale. The lender must also record the notice of sale with the
recorder of deeds and mail a copy to the mayor or the mayor's
agent within this time frame. Traditionally, lenders also inform
any lien holders about the sale. The mortgage or deed of trust
may include a particular time and place of the sale. If so, the
procedure must be followed. If not, the lender or trustee
acquires a court order specifying the sale terms. Likewise, the
lender abides by any advertising requirements stipulated in the
mortgage or deed of trust. If no requirements are included, the
lender typically advertises the foreclosure sale in The
Washington Post or The Washington Times five times prior to sale
date. The foreclosure sale is conducted by a licensed auctioneer
and typically occurs at the auctioneer's office. If a trustee
postpones the sale, a new notice of sale is republished and
recent. Once the sale is complete, the trustee's deed is
recorded. The borrower has no rights of redemption after a deed
of trust foreclosure sale.
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