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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. |
