What is a Mortgage Foreclosure case?
A mortgage foreclosure can happen when a borrower falls behind on mortgage payments. The lender can go to court to take back the property. The lender can then sell the home to get back the money that is owed.
Two main types of foreclosure cases:
- Residential properties:
- Houses
- Condominiums (condos)
- Co-ops
- Properties with four or fewer units
- Nonresidential properties:
- Commercial buildings
- Warehouses
- Multi-family buildings with five or more units
- Investment properties
Steps in a Mortgage Foreclosure Case
Step 1. The Lender files a complaint
Step 2. The lender serves the borrower
The lender must give the borrower a copy of the court papers. This is called service of process.
Step 3. The borrower must file a response
The borrower must file a response that tells their side of the story within 21 days.
If the borrower does not file a response in time, the lender can ask the judge for a default judgment which would mean the lender can continue with the foreclosure sale.
Step 4. The borrower can request mediation
The D.C. Department of Insurance, Securities, and Banking (DISB) offers mediation where the lender, borrower, and a neutral person talk about a way to avoid foreclosure, like a loan change or another option.
Call the DC Foreclosure Prevention Hotline at (202) 265-2255 for more information.
Step 5. The borrower may be able to pay what they owe to stop the foreclosure
In some cases (like residential cases), the borrower can stop the foreclosure by paying all missed payments and other fees.
Step 6. Go to your court hearing (if needed)
The court will schedule a hearing to decide your case.
Step 7. Get a decision from the judge
The judge will decide whether to order a foreclosure sale.
Common Questions
You can file if you are a lender.
The court can decide whether to order a foreclosure sale.
You don’t need a lawyer, but one may help. Free or low-cost legal help may be available.