Washington, DC real estate foreclosures are a great option if you are searching for your next investment property. On average, a DC foreclosure will sell for less than a similar home sold by its owner.

Making the most of foreclosure listings in Washington, D.C. means knowing about the listings first and knowing when to buy and when to walk away. In order to have the best deal, make sure that you:

1. Become familiar with the laws of foreclosure in DC so you can exercise your knowledge at the best time to buy.

2. Search the local newspapers for legal notices of foreclosure.

3. Use services that will automatically update you about foreclosed properties. Washington, DC properties might sell fast, so you will want to know about them as soon as possible.

Action Steps
The best contacts and resources to help you get it done

Know the ins and outs of foreclosures in Washington

Foreclosure laws vary from place to place, so its best to know the local rules and regulations before you buy Washington, DC foreclosure properties. For example, the amount of time a homeowner will have to redeem a home varies as does the amount of time before a home goes to auction.

I recommend: Check out RealtyTrac and ForeclosureLaw.com for a detailed look at the laws of foreclosures in Washington.

Search legal notices for foreclosure listings in Washington, DC

One of the best ways to get an edge on the competition and buy Washington, DC foreclosures is by searching the legal notices in local papers. These notices will let you know when a property owner goes into default on a mortgage as well as alert potential buyers when the property will appear at auction.

I recommend: Making the most of foreclosure listings in Washington, D.C. means staying abreast of the latest information and news. Check out the legal notices at the Washington Post or at the Washington Times.

Use a service to find Washington, DC foreclosure real estate

If sifting through legal notices is not your forte, don't worry. There are several services that can keep track of Washington, DC foreclosures for you and send you a quick e-mail when there is a property that meets your specifications. Check your e-mail early and often so you can jump on the right property when the opportunity presents itself.

I recommend: Sign up for e-mail updates from services such as Email Foreclosures or Default Research. You can customize your alert options and get information as often as you prefer.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Making the most of foreclosure listings in Washington, DC can lead to an affordable investment property to add to your roster. Check out all of the available properties from condos to townhomes to multifamily units to ensure that you explore all of your available options for Washington, DC real estate foreclosures.
• •  Home foreclosure in Washington DC can include cheap properties sold at auction. Do your research first as the property might also come with costly repairs as well as liens on the title.

Washington, DC foreclosure listings are your link to residential and commercial properties that are being sold below market value. Studies show that foreclosure properties in Washington, DC and the rest of the nation sell for an average of 22 percent less than ordinary home sales. Whether you’re seeking a townhouse in Foggy Bottom, a commercial property on Capitol Hill or an investment property that you can turn around and sell for profit, you have several options for finding foreclosure property listings in Washington, DC.

Foreclosure properties in Washington, DC are the end result when homeowners or business owners miss their mortgage payments and ultimately default on their loans. Washington, DC foreclosure properties, also called Washington, DC distressed properties, present a potentially lucrative opportunity for investors.

A Washington, DC foreclosure property may be sold at one of three stages in the foreclosure process:

1. Stage 1 — Pre-foreclosure: Homeowners are considered to be in pre-foreclosure when they have missed at least one mortgage payment. Pre-foreclosure properties in Washington, DC often sell at 20-40 percent below market value.
2. Stage 2 — Foreclosure auction: Lenders sell Washington, DC foreclosures at auction to the highest bidders. Buying at auction can result in savings of 35-50 percent off market value.
3. Stage 3 — Real Estate Owned (REO): When the lending bank is the highest bidder at the auction or there are no bidders, properties become bank-owned foreclosures. In Washington, DC, buying property from the bank typically results in more modest savings.

Action Steps
The best contacts and resources to help you get it done

Find foreclosure property listings in Washington, DC

Providers of foreclosure listings in Washington, DC typically offer listings by county, city or ZIP code so you can find foreclosures in your area. Note that most Washington, DC foreclosure listings can only be accessed if you register online and pay a fee.

I recommend: Providers of foreclosure listings in Washington, DC that list hundreds of thousands of properties include RealtyStore.com, RealtyTrac, ForeclosureDataBank.com, Foreclosure.com and ForeclosureS.com.

Find pre-foreclosure listings in Washington, DC

Homeowners in pre-foreclosure are often motivated to unload their homes at bargain prices as a way to avoid foreclosure. Using pre-foreclosure listings, you can find such homeowners.

I recommend: Washington, DC distressed properties and properties in the surrounding areas of Maryland and Virginia can be found at FindMeDistressedHomes.com, which specializes in pre-foreclosure listings.

Find listings for Washington, DC foreclosures at auction

Foreclosure auctions are typically held at the county courthouse. Buyers interested in bidding on a Washington, DC foreclosure property must be present at the auction and usually must bring a deposit in the form of a cashier's check.

I recommend: Check the auction calendar listings for upcoming sales on Washington, DC foreclosure properties at the Real Estate Disposition Corporation where you can also sign up to receive email notifications of upcoming auctions in the area. The real estate auctions listed at GovernmentAuctions.org often include foreclosures, but you’ll need to register to view them.

Find listings for government-owned and bank-owned foreclosures in Washington, DC

Even though government-owned or bank-owned foreclosures in Washington, DC don't offer the same savings as pre-foreclosures or foreclosures sold at auction, they can still represent a significant savings over ordinary home sales.

I recommend: HUDForeclosed.com offers the largest inventory of government-owned and bank-owned foreclosures in Washington, DC. At All Foreclosure Information, you can search for properties owned by the government, asset managers or banks.

Find listings for Washington, DC commercial foreclosure properties

Business foreclosures in Washington, DC occur when business owners default on a commercial mortgage loan. In Washington, DC, commercial foreclosure properties typically include business properties, such as office buildings or retail spaces.

I recommend: Search the business foreclosure listings in Washington, DC at Foreclosure Listings. Other providers of commercial foreclosure listings in Washington, DC include ForeclosureFreeSearch.com.

Find free foreclosure listings

Few providers of foreclosure listings in Washington, DC offer free foreclosure lists, however, you can find free trials or very low-cost trials.

I recommend: ForeclosureFreeSearch.com offers a free seven-day trial. For a seven-day trial, you’ll pay $1 at HUDForeclosed.com, $1.95 at RealtyStore.com and $3.95 at ForeclosureDeals.

Use online learning tools to get the most from Washington, DC foreclosure listings

Master the art of investing in foreclosures by taking advantage of online tutorials, webinars and other educational resources offered by providers of Washington, DC foreclosure listings.

I recommend: Check out the resources in the learning center at RealtyTrac or the Foreclosure.com webinar series for educational sessions on buying foreclosure properties in Washington, DC.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Look for providers of foreclosure listings in Washington, DC that offer neighborhood reports and sale comparisons.
• •  Some providers of foreclosure listings in Washington, DC also offer loan and downpayment programs via their websites.
• •  Washington, DC commercial foreclosure properties offer some of the biggest savings off market value.

One of the best ways to buy property in the nation's capital is by using foreclosure listings in Washington, D.C. Foreclosure listings provide a great deal of property information that can help you decide upon a competitive sales price. It is important to determine the market value of foreclosure property as you can typically buy foreclosed properties for as little as 80 percent of the market value.

For best results, restrict your search of foreclosures in Washington, D.C. to a particular geographical area. You then may narrow your search further according to other criteria, such as the type of property you are most interested in or square footage. There are primarily three types of foreclosure listings:

1. Free Washington, D.C. foreclosure listings from a local bank; you may not be able to get these listings if the property is owned by a third party.
2. D.C. foreclosure listings from online sources; these listings are normally updated dynamically.
3. Lists of bank foreclosures from a licensed realtor; these lists are available to the general public and quickly become outdated.
   

Action Steps
The best contacts and resources to help you get it done

Locate foreclosure listings in Washington, D.C. in specific neighborhoods

Most sites with foreclosure listings offer free trials before charging for a membership. The sites include a property search by location and may include photos, neighborhood and school system profiles.

I recommend: Get details like neighborhood information and sales reports on Washington, D.C. foreclosure properties with a free registration at RealtySore.com. ForeclosureRepos.com contains current foreclosures in Washington, D.C. with basic geographic information and details for registered members.

Use databases on Washington, D.C. real estate foreclosures to narrow search criteria

Once you've found a Washington, D.C. foreclosure website, use the site's database of foreclosed properties to learn specific information about foreclosed properties. Washington, D.C. foreclosure databases typically provide details that allow you to narrow down your online database search using criteria such as property value, property type, property statistics and loan type.

I recommend: ForeclosureConnections allows you to easily search by auction, bankruptcy, foreclosure or pre-foreclosure properties for sale. Narrow your search criteria by county, city, zip code and price at ForeclosureWarehouse.com.

Make quick contact to purchase Washington, D.C. foreclosure properties

When you find a foreclosed property you would like to purchase, it is important to contact the homeowners as quickly as possible since they will likely be contacted many times during the course of the foreclosure process. Most online foreclosure databases provide contact information to learn more about the home and how it will be sold.

I recommend: Access contact information for properties in Washington, D.C. when you register for the free trial at ForeclosureFreeSearch.com. Foreclosure.com provides a helpful FAQ that includes information on how to purchase foreclosed properties and how to use the website to access contact information for a particular property.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  You can work directly with the owner to buy a property before it goes into foreclosure. Pre-foreclosure Washington, D.C. homes may be purchased for as little as 70 percent of their market value. However, it can be difficult to locate owners that have failed to make their mortgage payments.

Foreclosures occur when a lender, bank or other lien holder, such as a government entity, repossesses real property in the case of a default on the loan or lien. Usually, a homeowner falls behind on mortgage payments and the bank forecloses on the home. Sometimes the government forecloses on a home when a property owner fails to pay property taxes. The following key terms can help you understand the various types of foreclosures that take place Washington, D.C.

Action Steps
The best contacts and resources to help you get it done

Non-judicial foreclosure

Most foreclosures in Washington, D.C. are non-judicial foreclosures. These can happen when a mortgage contract includes a clause allowing the lender to pursue a sale, or foreclosure, on the property held as collateral for the loan. In this case, the foreclosure proceeds without a court hearing.

I recommend: Foreclosure Listings offers more information on Washington, D.C., non-judicial foreclosures.

VA foreclosure

These are foreclosures on properties that the Department of Veterans Affairs has guaranteed or financed. The VA is the lender in this instance and contracts with a trustee to market and sell foreclosed properties.

I recommend: See the Department of Veterans Affairs for more details, or see REOTrans.com for the VA foreclosed property listings.

Trustee and trustee sale

A trustee is the agent for the lender. This agent, or trustee, holds the property in trust and conducts the foreclosure sale. A trustee sale is a foreclosure sale done by the trustee, usually at public auction.

I recommend: Foreclosure.com offers a listing of foreclosure properties in the U.S. and information on each state's foreclosure laws.

Notice of sale or auction

In the District of Columbia, the notice of sale is required. This notice is sent to the defaulting party, and the actual sale or auction itself cannot be fewer than 18 days from its initial publication in a local paper. At the same time, the notice of sale must also be posted at the property.

I recommend: RealtyTrac details the foreclosure process in Washington, D.C.

Real-estate-owned (REO) or bank-owned

REOs are lender-owned properties that have already been repossessed from the defaulting borrower, and many people believe them to be good investments. The perception is that banks will negotiate down to lower prices in order to get rid of the properties, as they do not want to be in the real estate business.

I recommend: Countrywide Bank is a lender that offers REOs for sale in Washington, D.C.

Tax lien foreclosure and government auction

These foreclosures occur in Washington, D.C., when property taxes go unpaid. Washington, D.C., laws allow the government to auction off these tax-delinquent properties.

I recommend: BankForeclosuresSale.com offers a description of the tax lien foreclosure process and gives a list of Washington, D.C. foreclosures.