Foreclosure mediation in Washington, D.C.

How foreclosure mediation works in Washington, D.C., step by step

1. Who qualifies

   Residential mortgages with 4 or fewer units

   A residential mortgage is a loan to buy or refinance property with 4 or fewer single-family dwellings, including condo and co-op units, unless the debt is owed only by a business entity. The borrower and any record title holder get the notices. The program does not apply to court foreclosures.

   D.C. Code §§ 42-815.01(a), 42-815.02(a), 42-815.04

2. What the lender must send

   With the Notice of Default

   The lender must include a contact who can explain mediation, a list of its loss mitigation programs and their rules, a loss mitigation application, contact information for a HUD-approved housing counselor, and a mediation election form with envelopes. DISB's mediation office then mails you a notice within 7 days and a second notice within 20 days.

   D.C. Code § 42-815.02(b), (c)

3. The 30-day deadline

   Within 30 days after the Notice of Default is mailed

   Return the mediation election form and the fee to the Mediation Administrator, and the loss mitigation application to the lender. If you miss the deadline you lose the right to mediation, though the Administrator may waive it for good cause. The fee amount is set by DISB rule.

   D.C. Code § 42-815.02(d)(1)

4. What it pauses

   Session within 90 days; done within 180 days

   The first session must start within 90 days after the Notice of Default was mailed, and mediation must end within 180 days unless both sides add 30 days. The power of sale cannot be used until a mediation certificate issues, and a sale is void if the lender files its notice of intention to foreclose without a final recorded certificate.

   D.C. Code § 42-815.02(d)(2), (d)(3), (e)(5), (h-1)

5. Who attends and what the lender brings

   At each session

   You and the lender, or representatives, must attend. The lender must bring its loss mitigation analysis, the mortgage and note, every assignment, and proof it has the right to foreclose, and its representative must have settlement authority or reach someone who does. Free counselors from Housing Counseling Services can help you prepare.

   D.C. Code § 42-815.02(e)(1)

6. Good faith and penalties

   During mediation

   The lender owes a $500 penalty for not attending, $500 for not bringing required documents, and $500 for not taking part in good faith. If it rejects your proposal it must explain why in writing. If DISB finds the lender did not act in good faith and the lender does not appeal within 30 days, the Notice of Default becomes void.

   D.C. Code § 42-815.02(a)(2A), (e)(2), (e)(3)(C)

7. If there is no agreement, or an agreement is broken

   30 days to appeal

   If you cannot agree, the mediator reports within 10 days and DISB may issue a preliminary mediation certificate. You have 30 days to appeal to D.C. Superior Court, and foreclosure is stayed while an appeal is pending. If you settle and the lender breaks the deal, it owes $1,000 and must perform; if you break it, the lender can apply for a certificate.

   D.C. Code § 42-815.02(e)(3), (e)(4)

The program in Washington, D.C.

Common questions in Washington, D.C.