How to stop a foreclosure in Washington, D.C.

The statutory right to cure applies to out-of-court (power of sale) foreclosures of a residential mortgage, a loan on a property with 4 or fewer homes, including condos and co-ops. It starts once the lender gives the notice of intention to foreclose under § 42-815, and lasts up to 5 business days before bidding starts. You or someone on your behalf can pay everything needed to bring the loan current, without the accelerated balance, plus reasonable late charges and the lender's foreclosure costs such as advertising, trustee and reasonable attorney's fees, by cash, cashier's check or certified check, once in any 2 consecutive calendar years. A cure puts you back where you were before the default. The law says these power of sale rules do not apply to court foreclosures, which follow the court's process; the D.C. Courts say some borrowers in residential cases can stop the case by paying all missed payments and fees, so ask the lender's attorney and the court.

D.C. Code §§ 42-815.01, 42-815.04, 42-816

There are two programs, depending on the lender's route. Out of court: the lender must offer mediation through DISB with its Notice of Default. To take part you return the Mediation Election Form and a fee to DISB (LawHelp DC lists the fee as $50) and the loss mitigation application to the lender within 30 days of mailing, and the lender cannot use its power of sale until DISB issues a mediation certificate. In court: at your first court date the judge can place the case on an early mediation schedule with a mediator from the court's Multi-Door Dispute Resolution Division. Free housing counselors help with both. Call the DC Foreclosure Prevention Hotline at (202) 265-2255.

A lender cannot sell a home under a power of sale unless it first mails a Notice of Default, with a loss mitigation application and a Mediation Election Form, and gets a mediation certificate from DISB. The certificate and the notice of sale must be recorded in the land records.

D.C. Code §§ 42-815(b), (d), 42-815.02

On the out-of-court (power of sale) route, you can stop a residential foreclosure sale by paying the missed payments, late charges and foreclosure costs, without the accelerated balance, once in any 2 consecutive calendar years. Court foreclosures are excluded from these power of sale rules and follow the court's process.

D.C. Code §§ 42-815.01, 42-815.04

A lender that skips the mediation, fails to bring the required documents, or does not take part in good faith can be fined $500 for each failure. If you miss a session without good cause, DISB issues the certificate to the lender.

D.C. Code § 42-815.02(e)

A buyer at a foreclosure auction cannot issue a notice to quit, start a case for possession, or charge rent or use and occupancy against a current occupant until a deed to the buyer is recorded at the Recorder of Deeds. This rule was added in 2022.

D.C. Code § 42-815.05

Anyone who owns residential property in the District can get free foreclosure counseling through DISB's program with Housing Counseling Services, and a counselor may connect you with free legal help.