by Ben Puchalski
on Monday, February 13th, 2012 at 10:07am.
A lot of investors and homebuyers ask me about buying a Washington DC foreclosure. In this blog I will talk about the process a bank must go through to foreclose and where to search for them.
First, you must understand that in Washington DC there are very few foreclosures on the market currently. It has been over a year since banks have foreclosed on a property in Washington DC. This is due to the robo signing issue(which was just resolved last week) and the mediation law that the DC council put in place in December 2011. The mediation law forces banks to meet face to face with the borrower to prevent a Washington DC foreclosure. In the second half of 2011 only 25 notices of default were issued by banks compared with over 1000 issued in 2010. A notice of default (NOD) is the instrument used to initiate a foreclosure preceding in Washington DC. This must be recorded in the land records. Banks hire local attorneys to issue the NOD's. These attorneys are then known as "substitute trustees".
Once the substitute trustee has the ability to foreclose they list the property in the newspaper. The property is usually listed in the Washington Post or the Washington Times.
The trustee then hires an auction firm to complete the Washington DC foreclosure. Some of the trustee's are listed below.
If you are looking to purchase a pre-foreclosure(which is not a short sale) then you would go to the auctioneers site. One of the larger auction companies in the area is Alex Cooper.
To search for Washington DC foreclosures you can go here. On the right hand side under "Foreclosures" select "search foreclosures". There are currently 41 properties listed as a Washington DC foreclosure.