- Who sends it
- The note holder or its agent (often a trustee or law firm), by certified mail and first-class mail, with a copy to the District's Recorder of Deeds
- What it starts
- At least 30 days before the sale, counted from the day the Recorder of Deeds receives its copy. Your right to cure runs until 5 business days before bidding
- Do this first
- Call the contact named on the notice to confirm the sale and ask for the cure amount in writing, then call Legal Aid DC at 202-628-1161
What this notice is in Washington, D.C.
D.C. Code § 42-815(c) says no out-of-court sale of a residential mortgage can happen unless the holder gives you written notice of its intent to foreclose and of the sale, by certified mail and first-class mail, and sends a copy to the District at least 30 days before the sale. The current form is DISB's Form FM-5, filed with the Office of Tax and Revenue's Recorder of Deeds.
This notice comes after the Notice of Default and the mediation certificate. The certificate and this notice must both be recorded in the land records (D.C. Code § 42-815(d)). The FM-5 form has spaces for the mediation certificate number and its expiration date.
The form lists the sale date, time and place, the balance on the note, the amount needed to cure the default, the fees and costs so far, the costs expected through the fifth business day before the sale, and the name and phone number of the person to contact to stop the sale. DISB also lists an older Recorder of Deeds form called Notice of Foreclosure Sale of Real Property or Condominium Unit (ROD-14), with similar contents.
How to count the 30 days
- The 30 days start on the date the Recorder of Deeds receives its copy, not the date you get yours (D.C. Code § 42-815(c)(4)). The District must confirm receipt to the lender in writing that same day.
- The FM-5 form says the sale date can be postponed for no more than 30 calendar days from the original date. After that, the notice expires, so a later sale needs a new notice.
- Your right to cure lasts until 5 business days before bidding starts (D.C. Code § 42-815.01(b)). Business days usually skip weekends and holidays, so count back carefully from the sale date and do not wait until the last week.
- If your servicer gets a complete loss mitigation application more than 37 days before the sale, federal rules generally bar the sale while it is reviewed (12 C.F.R. § 1024.41(g)).
Your right to cure
For a residential mortgage, you or someone for you can stop the sale by paying, in cash, cashier's check or certified check, all missed payments and reasonable late charges needed to bring the loan current, without the accelerated balance, plus the lender's foreclosure costs such as advertising, trustee fees and reasonable attorney's fees (D.C. Code § 42-815.01(b), (c)). You can use this right only once in any 2 calendar years in a row.
- The cure amount on the form is a starting point. Ask the contact on the notice for an updated figure in writing.
- A cure puts the loan back where it was before the default.
What it does and does not mean
- It is a real sale notice. If nothing changes, the home can be auctioned on the date shown.
- It is not an eviction. After a sale, the buyer cannot take steps to remove you until a deed to the buyer is recorded (D.C. Code § 42-815.05).
- A sale is void if this notice was filed without a final recorded mediation certificate (D.C. Code § 42-815.02(h-1)).
- If the home sells for less than you owe, the lender would need a court judgment to collect the rest. See deficiency judgments in Washington, D.C.. If it sells for more, see foreclosure surplus funds in Washington, D.C..
What to do this week
- Call the person named on the notice to stop the sale. Confirm the date and ask for the cure amount in writing.
- Check that the mediation certificate number on the form is filled in. If you never had a chance at mediation or think a step was skipped, call Legal Aid DC at 202-628-1161 the same day.
- Call the DC Foreclosure Prevention Hotline at (202) 265-2255. A counselor can contact your lender about other options.
- If you have a buyer, a refinance or an application under review, tell the servicer and the trustee in writing and ask them to postpone. Get any agreement in writing.
- Bankruptcy stops a sale under the federal automatic stay (11 U.S.C. § 362(a)). Talk to a lawyer before filing. Read the national guide to a notice of sale.
Scam warnings
- Sale notices are public records, so expect letters and calls. D.C. bans foreclosure rescue deals done for pay where you transfer title with a promise to get it back (D.C. Code § 42-2432).
- Pay a cure only to the lender, servicer or trustee named on the notice, never to a third party who says it will pass the money along.
- Report rescue offers to the Office of the Attorney General at 202-442-9828.
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 much notice do I get before a D.C. foreclosure sale?
On the out-of-court route, at least 30 days, counted from the day the Recorder of Deeds receives its copy of the notice (D.C. Code § 42-815(c)). Your own copy may arrive a few days later than that.
Can a D.C. foreclosure sale be postponed?
The FM-5 form says the sale date can be postponed for up to 30 calendar days from the original date, and then the notice expires. A sale after that would need a new notice.
How late can I catch up before a D.C. sale?
Up to 5 business days before bidding starts, by cash, cashier's check or certified check, once in any 2 calendar years in a row (D.C. Code § 42-815.01). After that, you can still ask the lender to accept payment and postpone, but it does not have to.
Who is the contact on a D.C. Notice of Intention to Foreclose?
The FM-5 form must give the name, address and phone number of the person to contact to stop the sale. Call them first for the sale status and the cure amount in writing.
Other District of Columbia letters
- Notice of Default on Residential Mortgage (Form FM-1)In Washington, D.C., a lender that wants to sell your home out of court must first mail you a Notice of Default on Residential Mortgage (Form FM-1) with mediation forms. You have 30 days from the mailing to choose mediation with the District's Department of Insurance, Securities and Banking (DISB). If you miss that date, you lose the right to mediation.
- 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.
- 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 § 42-815.01 (right to cure)
- D.C. Code § 42-815.02 (mediation certificate; void sale)
- D.C. Code § 42-815.05 (deed required before action against occupant)
- D.C. Code § 42-2432 (foreclosure rescue prohibited)
- DISB Form FM-5, Notice of Intention to Foreclose a Residential Mortgage (Rev. 11/21)
- Recorder of Deeds Form ROD-14, Notice of Foreclosure Sale of Real Property or Condominium Unit
- DISB: Foreclosure Prevention Program