- Who sends it
- Your lender or its agent, by certified mail and first-class mail, with copies to DISB's Mediation Administrator
- What it starts
- A 30-day window to return the Mediation Election Form, the Loss Mitigation Application and a $50 fee. No out-of-court sale can happen until DISB issues a mediation certificate
- Do this first
- Find the deadline date printed on the form, then call the DC Foreclosure Prevention Hotline at (202) 265-2255 for a free counselor to help fill out the forms
What this notice is in Washington, D.C.
In the District, a lender can foreclose in two ways. It can sue you in D.C. Superior Court, or it can sell your home out of court under the power of sale in your deed of trust. This notice means the lender is getting ready for the out-of-court route.
Before an out-of-court sale of a residential mortgage, D.C. Code § 42-815(b) says the lender must mail you a written notice of default by certified mail and by first-class mail, send a copy to the District, and get a mediation certificate under D.C. Code § 42-815.02. A residential mortgage here means a loan on property with 4 or fewer homes, including condos and co-ops (D.C. Code § 42-815.01(a)).
DISB writes the form. The current version is Form FM-1 (Rev. 08/25). It lists what the lender says you owe, the amount to bring the loan current and a date to pay it. It also explains mediation, which is a face-to-face meeting with your lender and a neutral mediator provided by the District.
What should be in the envelope
DISB's form says the Notice of Default must come with these papers:
- Borrower Assistance and Resource Information (Form FM-1BA), a list of free housing counselors and free legal help.
- Contact information for someone at your lender who can explain mediation, and a description of the lender's loss mitigation programs and their rules.
- A Loss Mitigation Application (Form FM-1LM) with instructions.
- A Mediation Election Form (Form FM-2).
- Two pre-addressed envelopes, one to the Mediation Administrator and one to your lender.
If anything is missing, the form tells you to contact the Mediation Administrator at (202) 442-7765 or DISB.mediation@dc.gov. DISB's Mediation Administrator also mails you its own notice within 7 days, and a second notice within 20 days (D.C. Code § 42-815.02(c)).
The 30-day deadline and how to count it
- To choose mediation, you must return the Mediation Election Form and the $50 fee to the Mediation Administrator, and the Loss Mitigation Application to your lender, within 30 days after the notice was mailed (D.C. Code § 42-815.02(d)(1)).
- Count from the mailing date, not the day you opened it. DISB's instructions tell the lender to fill in the 30th day after the mailing, not counting the mailing day. If that day is a weekend or holiday, the deadline moves to the next business day. Use the date printed on your form.
- The FM-2 form says to send the Election Form, the Loss Mitigation Application and the $50 check or money order made out to the "D.C. Treasurer" to DISB, and copies of the Election Form and application to your lender. Do not send cash. The form says this is the only fee you pay to take part.
- If you miss the deadline, you lose the right to mediation. The Mediation Administrator may waive the deadline for good cause, so call right away if you are late.
- If you do not choose mediation, DISB issues a mediation certificate to the lender no earlier than 45 days and no later than 60 days after the mailing (D.C. Code § 42-815.02(d)(3)). The lender can then send a Notice of Intention to Foreclose and sell at least 30 days later.
See how long foreclosure takes in Washington, D.C. for the full timeline.
What it does and does not mean
- It is not a lawsuit and not a sale date. It is the first required step before an out-of-court sale.
- It does not mean you must pay the full amount by the date shown to keep your home. You can choose mediation, apply for the lender's programs, or both.
- Applying only to your lender does not stop the mediation clock. The FM-1 form says you must still return the Election Form to DISB if you want a mediator.
- If you choose mediation, the form says foreclosure cannot begin until mediation ends. The first session must start within 90 days after the notice was mailed, and mediation must end within 180 days unless both sides agree to 30 more days (D.C. Code § 42-815.02(d)(2), (e)(5)).
- You can challenge a defective Notice of Default the same way you could challenge a defective notice of intention to foreclose (D.C. Code § 42-815.02(h-2)).
What to do this week
- Write the deadline date from the form on your calendar.
- Call the DC Foreclosure Prevention Hotline at (202) 265-2255, Monday to Friday, 9 a.m. to 5 p.m., to sign up for a free clinic and a housing counselor who can help with the forms.
- Fill out the Loss Mitigation Application with your income and expense papers. Keep copies of everything you send.
- Mail both envelopes well before the deadline. Consider mailing with tracking so you have proof of the date.
- If your income is low, call Legal Aid DC at 202-628-1161 or another free legal service listed on Form FM-1BA. Read foreclosure mediation in Washington, D.C. and the national guide to a notice of default.
Scam warnings
- The only mediation fee is the $50 payable to the "D.C. Treasurer" and sent to DISB. Anyone else who asks for money to "sign you up" for mediation is not part of the program.
- D.C. bans foreclosure rescue deals done for pay, where you sign over your home with a promise you can get it back (D.C. Code § 42-2432). Report offers like this to the Office of the Attorney General at 202-442-9828 or to DISB at (202) 727-8000.
- See Washington, D.C. foreclosure help for free, trusted contacts.
The rest of the District of Columbia process
See how foreclosure works in District of Columbia, the timeline, ways to stop it and free help in District of Columbia, or read the national guide to this letter.
Common questions
How long do I have to answer a D.C. Notice of Default?
To choose mediation, you have 30 days after the notice was mailed to send the Mediation Election Form, the Loss Mitigation Application and the $50 fee to DISB, and copies to your lender. The exact date should be printed on the form.
What if I never got the mediation forms with my D.C. Notice of Default?
Call DISB's Mediation Administrator at (202) 442-7765 or email DISB.mediation@dc.gov right away. The law requires the lender to include the forms, and a defective Notice of Default can be challenged under D.C. Code § 42-815.02(h-2).
Can my D.C. lender sell my home right after the 30 days?
No. If you do not choose mediation, DISB issues a certificate 45 to 60 days after the mailing. The lender must then send a Notice of Intention to Foreclose, and the sale cannot happen until at least 30 days after the District receives its copy.
Other District of Columbia letters
- Mediation Certificate (preliminary and final)In Washington, D.C., a lender cannot use the power of sale until DISB's Mediation Administrator issues a mediation certificate. If mediation ends without a deal, DISB first issues a preliminary certificate, and you have 30 days to appeal to D.C. Superior Court. Once a final certificate is recorded, the lender can send the sale notice.
- Notice of Intention to Foreclose a Residential Mortgage (Form FM-5)In Washington, D.C., the Notice of Intention to Foreclose a Residential Mortgage (Form FM-5) is the out-of-court sale notice. It gives the date, time and place of the auction and the amount needed to cure. The sale cannot happen until at least 30 days after the Recorder of Deeds receives its copy, and you can cure up to 5 business days before bidding starts.
- Summons and Complaint for foreclosure in D.C. Superior CourtIf your lender sues to foreclose in Washington, D.C., you are served with a Summons and Complaint from D.C. Superior Court. Court Rule 12 gives you 21 days after service to file an answer. If you do not respond, the lender can ask the judge for a default judgment and move toward a sale.
- 30-day notice to quit after a foreclosure saleAfter a foreclosure sale in Washington, D.C., you cannot be removed just because the auction happened. The buyer must first record a deed, then give you written notice of at least 30 days, and then win an eviction case in court. A notice to quit is not an eviction order.
Sources
- D.C. Code § 42-815 (notice under power of sale)
- D.C. Code § 42-815.02 (foreclosure mediation)
- D.C. Code § 42-815.01 (residential mortgage definition; right to cure)
- D.C. Code § 42-2432 (foreclosure rescue prohibited)
- DISB Form FM-1, Notice of Default on Residential Mortgage (Rev. 08/25)
- DISB Form FM-2, Foreclosure Mediation Election Form
- DISB Form FM-1BA, Borrower Assistance and Resource Information (Rev. 08/25)
- DISB: Foreclosure Prevention Program