Washington D.C. mayor Adrian Fenty ratified a provision this week with the aim of bringing a more judicial-type framework to the nonjudicial foreclosure system in the nation's capital.
Foreclosures in DC currently do not go through the courts, and some are resolved in as little as 30 days.
The DC Council approved the Saving DC Homes from Foreclosure provision late last week. It requires lenders to engage in a four-month mediation period with delinquent borrowers to discuss payment options before foreclosure.
Lenders must also send a copy of every default notice to the D.C. Department of Insurance, Securities and Banking, which will keep track of the case and possibly request additional information from a lender.
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