The Process of Real Estate Foreclosure Auctions in Washington, D.C.

When a property holder becomes behind in paying their monthly note payments shortly thereafter the lender notifies them of the default. Typically they are notified in a matter of months but the time frame can vary. After written notice of delinquency and being unable to work out an agreeable payment arrangement the lender will elect to proceed to foreclosure.

The foreclosure process officially begins when a notice of upcoming foreclosure is filed at the Recorder of Deeds office in the District of Columbia. This document must be filed at least 30 days prior to the date of the foreclosure sale. The property owner and junior lien holders are also sent a copy of the foreclosure notice at the same time.

The property owner can stop the foreclosure process at any time prior to the sale by paying off the default amount owed as well as any late fees or additional costs. They may negotiate a different form of payment than what had been stipulated in their note.

Customarily advertisements for the foreclosure auction runs five times over a two week period prior to the sale date. In some cases the mortgage or deed of trust provides a procedure for determining the date, location and conditions of the foreclosure sale, as well as directions for advertising the sale to the public.

The foreclosure sale is typically held at an auction house located in Washington, D.C. It is held as a public auction with a licensed auctioneer conducting the sale. The auctioneer or one of the auction staff persons check bidder deposits. The trustee representing the lender is present and offers the opening bid. The property is then awarded to the highest bidder who is then issued a sale report upon payment of their deposit. The winning bidder has 30 days to obtain financing and set a settlement date.

In some cases the foreclosure process may differ than described above. Please check with the auctioneer or the trustee for updated details.