In judicial foreclosures, a lender may sue the borrower to obtain a court order to foreclose and sell your property when there is no power of sale clause in the loan document. A lender can also publish a notice of sale in the county newspaper of where the property is located for four consecutive weeks and then sell the property at the county court house of where the property is located. In addition, in a judicial foreclosure, the court may give the borrower a year to redeem the property.

When the power of sale clause is present in the loan, a lender will utilize the non-judicial foreclosure procedure. The procedures set out in the power of sale clause must be followed by the lender, however if the power of sale clause lacks the pertinent information such as time, place and terms of sale then the lender must oblige by the District of Columbia state foreclosure procedures. Notice of default must be recorded in the district courts where the property is located within 30 days of the default and no less then 3 months before the date of the sale. After recording intent, the lender must notify the borrower/occupant and any party that has a lien on the property within 10 days by court server or certified mail. The borrower can stop foreclosure process by curing the default plus cost incurred within 90 days from the date recorded. However, in the District of Columbia, if the borrower fails to cure the default a Notice of Sale is recorded. The notice of Sale gives the lender the right to sale the property in the state of District of Columbia via auction in 21 days. Intent must be sent to all lien holders on deed by certified mail and posted in the newspaper in the county of where the property is located for three consecutive weeks prior to sale date. The notice of intent to sale also needs to be posted at the local courthouse of where the property is located or at adjoining county courthouse if one is not located within. Notice is also required to be posted at the property itself.

Right of Redemption and Deficiency Judgments in the District of Columbia are only available in judicial foreclosure.

If you live in District of Columbia and are facing foreclosure, 1st Foreclosure Prevention can help you work with you lender to stop the foreclosure process and help you to save your home.