How foreclosure works in Washington, DC, the notices and mediation that have to come first, and your real choices, including selling before a sale date.
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Under federal rules, a mortgage servicer generally can't make the first foreclosure notice or filing until the loan is more than 120 days delinquent.
Source: 12 CFR 1024.41(f)(1)
For a residential mortgage in DC, the lender has to mail you a written notice of default before any foreclosure sale. Later, a notice of intention to foreclose must go to you, with a copy to the Mayor at least 30 days before the sale date.
The notice of default lists the amount needed to catch up and comes with a mediation election form. Return it within 30 days of the mailing and the lender must take part in mediation. No sale can go ahead until a mediation certificate is issued and recorded.
You can generally cure the default up to 5 business days before bidding starts by paying the past-due amount plus the lender's foreclosure costs, such as trustee and attorney's fees. This right can be used once in any 2 consecutive calendar years.
Call your servicer about a repayment plan or loan modification, and use mediation if you get a notice of default. DC's Foreclosure Prevention Hotline, (202) 265-2255, signs homeowners up for free foreclosure prevention counseling.
If keeping the house isn't realistic, a cash sale can close in as little as 7 days and pay off the loan from the proceeds, so any equity goes to you. There are no fees or commissions, and no obligation to accept.
With enough time and equity, listing the house often nets more than a cash sale. We'll show you the cash offer next to what listing could net so you can pick the better road.
Example: a $250,000 home
| Offer | $205,000 |
|---|---|
| Repairs | $0 |
| Commissions | $0 |
| Closing costs | $0 |
| You walk away with | $205,000 |
| In 7 to 14 days | |
| Sale price | $250,000 |
|---|---|
| Repairs | about $8,000 |
| Commissions | about $13,800 |
| Closing and holding | about $6,000 |
| You walk away with | about $222,200 |
| In 60 to 90 days | |
Example only. Your numbers depend on your home and market.
This page explains the general rules. It isn't legal advice. Your documents and situation may differ, so talk to a housing counselor or attorney about your specific case.
It depends on your loan and how fast each step moves. Federal rules generally prevent the first foreclosure filing until you're more than 120 days behind, and in DC the notice of default, a chance at mediation and a sale notice sent to the Mayor at least 30 days ahead all have to come before a sale.
No, it's your choice. If you return the mediation election form within 30 days of the notice of default being mailed, the lender has to take part. If you don't, you lose the right to mediation, but the sale still can't happen until a mediation certificate is recorded.
Often, yes. A sale that closes and pays off the loan before the foreclosure sale typically ends it. You can also cure the default up to 5 business days before bidding starts. Timing is tight near the end, so talk to your servicer and to us early.
We are real estate investors based in Baltimore, helping homeowners since 2016. We buy houses directly for cash. We are not a licensed real estate brokerage and do not list homes ourselves; if listing could get you more, we show you the math so you can choose.
Know your numbers before you decide.
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