Judicial/ Non-Judicial Foreclosure: Only Non-Judicial Foreclosure
Right of Redemption / Deficiency Judgment: No / Yes
Timeline: 60 Days, Can vary depending on individual cases
Deed of Trust / Mortgage as Security Instruments: Deed of Trust
Non-Judicial Foreclosure process:
In Washington DC the Non-Judicial foreclosure process is used to foreclose on the mortgage loans. The Deed of Trust document generally contains a power of sale clause. The power of sale clause authorizes the lender / their authorized representative (referred to as Trustee) to conduct the foreclosure sale proceedings in case the borrower happens to default on their mortgage payments. The following guidelines can be followed for the Non-Judicial foreclosure process.
If the Deed of Trust document contains the time, location and other terms of the foreclosure sale, the same needs to be followed.
If the Deed of Trust document does not mention the above details, the Trustee needs to apply for a court order and follow the foreclosure terms set by the court order.
A foreclosure sale notice needs to be prepared by the Trustee and the same should be sent to the borrower in their last known address by registered post (receipt acknowledgement requested). This notice also needs to be sent to the Mayor of the District of Columbia or their authorized representative. The foreclosure sale cannot happen before thirty days of the receipt of the above notice by the Mayor or their deputy. In addition to this notice, any other notice mentioned by the Deed of Trust / Power of sale or the Courthouse, needs to be sent.
The borrower cannot re-claim their property once the foreclosure sale is completed. The lender can file a deficiency judgment against the borrower in case the value offered by the highest bidder (in the foreclosure sale) is less than the total amount owed to the lender.