- 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.
