Mirroring the diversity of the city itself, there is a wide variety of foreclosure properties that come to market in Washington, DC. Buying foreclosures presents an unparalleled opportunity to acquire a home in a neighborhood one might not already afford to live in. In Washington, DC foreclosures sale occur during an out-of-court process. This means that the existing mortgage usually includes a statement giving the lender the right to sell the property if the borrower defaults on the loan.
Acquiring Washington, DC Foreclosure Properties for Sale
The foreclosure process in Washington, DC is a minimum of 47 days long. A lender can start the pre foreclosure process by notifying the borrower about their violations of the terms of the mortgage. The lender must notify the borrower by certified mail at least 30 days prior to any sale.
There is no legal standard for public notification when a DC resident defaults on a loan. Usually the terms are spelled out in the mortgage or dead of trust. If no terms are disclosed in the mortgage, most lenders will then advertise the sale in the Washington Time and the Washington Post. Using a foreclosure list can be an efficient way to view many foreclosures in an area at once without having to comb through multiple newspapers only to see the same location repeatedly posted.
Unlike HUD auctions which are conducted by sealed bid, in Washington, DC, regular foreclosures are handled by auctioneers. One benefit for investors is the fact that there exist no rights of redemption for the original homeowner one the foreclosure sale has transpired. However, the borrower can fix the loan by paying off the defaulted amount and any associated fees up to 5 days prior to the foreclosure sale.
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