Right to foreclosure mediation — return the election form within 30 days
D.C. Code § 42-815.02
In plain words
In a D.C. nonjudicial foreclosure, the lender must send you a mediation election form with the notice of default. If you return it to the Mediation Administrator and the lender within 30 days of its mailing, you get mediation before the foreclosure can go forward. The lender must also send a loss-mitigation application to fill out.
Who is protected
Owner-occupant borrowers facing a nonjudicial foreclosure in D.C.
When it applies
- Only in District of Columbia.
- Only after a notice of default.
What you can do
Put the deadline on your calendar
Send the form and the loss-mitigation application in the envelopes provided, and keep copies.
Deadline: 30 days from the mailing of the mediation election form
Open the toolGet ready for court
Prepare income and hardship documents for the mediation session.
Open the tool
Honest limits
- Mediation does not guarantee a modification.
- This is general education, not legal advice. Laws change and details depend on your papers and your court; check the current law or ask a lawyer or legal aid.
The law
- State lawForeclosure mediation
D.C. Code § 42-815.02
What it says: The borrower may return the mediation election form within 30 days of its mailing.
Read the official texthttps://code.dccouncil.gov/us/dc/council/code/sections/42-815.02
Court cases
- Homeowner lostSame topicMartins v. BAC Home Loans Servicing, L.P.
Martins v. BAC Home Loans Servicing, L.P., 722 F.3d 249 (5th Cir. 2013)
a mortgage servicer acting for a properly assigned mortgagee may foreclose in Texas without possessing the original note, and an oral promise to modify a large loan is not enforceable
- Homeowner lostSame topicLage v. Ocwen Loan Servicing LLC
Lage v. Ocwen Loan Servicing LLC, 839 F.3d 1003 (11th Cir. 2016)
a servicer's duty to evaluate a loss-mitigation application depends on its being submitted more than 37 days before the sale date scheduled at that time
- Homeowner lostSame topicGresham v. Wells Fargo Bank, N.A.
Gresham v. Wells Fargo Bank, N.A., 642 F. App'x 355 (5th Cir. 2016) (per curiam) (unpublished)
the federal dual-tracking bar applies only when the servicer receives a complete loss-mitigation application more than 37 days before the foreclosure sale
- Homeowner lostSame topicBoren v. U.S. National Bank Ass'n
Boren v. U.S. Nat'l Bank Ass'n, 807 F.3d 99 (5th Cir. 2015)
a lender may abandon a prior acceleration by giving notice that it seeks less than the full accelerated balance, which restarts the four-year limitations period
- Homeowner lostSame topicWhittier v. Ocwen Loan Servicing, L.L.C.
Whittier v. Ocwen Loan Servicing, L.L.C., 594 F. App'x 833 (5th Cir. 2014) (per curiam) (unpublished)
a RESPA claim against a servicer fails without evidence of actual damages caused by the violation
- Homeowner lostSame topicMilton v. U.S. Bank National Ass'n
Milton v. U.S. Bank Nat'l Ass'n, 508 F. App'x 326 (5th Cir. 2013) (per curiam) (unpublished)
an agreement to delay a Texas foreclosure falls within the statute of frauds and must be in writing to be enforced
Related rights
Right to cure until 5 business days before bidding starts
D.C. Code § 42-815.01(b)(1)
In the District of Columbia you can cure your default and stop the sale by paying the past-due amount and allowed costs up to 5 business days before bidding begins. You can use this right no more than once in any two consecutive calendar years.
Read this rightFHA loans: a meeting before foreclosure
24 C.F.R. § 203.604(a)(1)
If you have an FHA-insured mortgage, your lender must meet with you — or make a reasonable effort to arrange a meeting — before three full monthly payments are unpaid and at least 30 days before starting foreclosure. A reasonable effort means at least two verifiable attempts to contact you. HUD now decides how the meeting may be held.
Read this rightFHA loans: the lender must look at ways to avoid foreclosure
24 C.F.R. § 203.605(a)
If you have an FHA-insured mortgage, your lender must review loss-mitigation options every month before four full payments are unpaid, and take the appropriate action. FHA options can include special forbearance, loan modification, a partial claim (an interest-free second loan from HUD to cover arrears), a pre-foreclosure sale, or a deed in lieu.
Read this rightNo foreclosure filing until you are more than 120 days behind
12 C.F.R. § 1024.41(f)(1)
Your servicer cannot make the first notice or filing to start a foreclosure until your loan is more than 120 days delinquent. This gives you time to apply for help. There are narrow exceptions, such as a due-on-sale violation.
Read this rightNo foreclosure while your complete application is being reviewed ("dual tracking")
12 C.F.R. § 1024.41(f)(2)
If you send a complete application for help before the foreclosure is started, the servicer cannot start the foreclosure until it has decided and any appeal is over. If you send it after the foreclosure started but more than 37 days before the sale, the servicer cannot ask for a foreclosure judgment or order of sale, or hold the sale, until it has finished the review — unless you are denied and the appeal is over, you reject the offers, or you do not follow an agreement.
Read this rightAppeal a denied loan modification
12 C.F.R. § 1024.41(h)
If your servicer denies you a loan modification and your complete application arrived 90 days or more before a sale (or before the foreclosure started), you can appeal. You have 14 days to appeal. Different staff must review it, and the servicer must decide within 30 days.
Read this right