Washington, D.C. Foreclosure Laws
Expected Timeline: Two to four months
Security Instrument: Deed of trust
Type of Process: Nonjudicial
Protections for Servicemembers: None.
Time to Respond: Lender must send thirty day notice of sale to homeowner via registered or certified mail. Thirty day notice begins when homeowners receive notice. A copy of the notice must also be mailed to the Washington, DC mayor.
Reinstatement Period: Allowed up to five days before the foreclosure auction.
Protections for High-Cost Mortgages: None.
Redemption Period: None.
Eviction Process: No specific timeline for eviction.
Deficiency Judgments: May be obtained by filing a lawsuit after the sheriff sale.
Limits on Deficiency Judgments: Deficiency judgments are allowed. If one is sought under judicial foreclosure proceedings, it may be entered in the foreclosure lawsuit.
Cash Exempted in Bankruptcy: $11,000 for single person, $22,000 for married couple.
State Statutes: D.C. Code Ann. § 42-815
Washington , DC foreclosure law only allows the lender to pursue the Non-Judicial Foreclosure process when foreclosing on a defaulted deed of trust. A power of sale clause must exist in the original loan documents, authorizing the lender to sell the property in the event the borrower defaults. The power to sell the property may be given to the lender of their representative, or trustee. If the power of sale clause specifies the time, place, and terms of the sale, those procedures must be followed.
The lender or their representative must obtain a court order that sets the terms of the sale. Written notice of the sale must be sent to the borrower’s last known address by certified mail with return receipt requested. The notice also must be sent to the mayor of the District of Columbia, or a designated agent. These notices must be sent at least thirty (30) days prior to the scheduled sale date.
The borrower in Washington , DC does not have any right to redeem the property after the sale. The lender may sue the borrower to obtain a deficiency judgment. The amount of the deficiency judgment is limited to the difference between the sale price and the balance remaining due on the original loan.