District of Columbia at a glance
Checked against the sources cited, 2026-09-19
| Topic | What the law says, and where it says it |
|---|---|
| How foreclosure works here | D.C. law allows both kinds of foreclosure. A lender can sell a home under the power of sale in a deed of trust without a court case, but only after giving the borrower written notice of the intention to foreclose, with a copy sent to the Mayor at least 30 days before the sale, and, for a residential mortgage, obtaining a mediation certificate. A lender can also file a foreclosure case in D.C. Superior Court, where the judge can order the property sold. D.C. Code § 42-815(b), (c); D.C. Code § 42-816 Show the source textA foreclosure sale under a power of sale provision contained in any deed of trust, mortgage, or other security instrument, shall not take place unless the holder of the note |
| Who holds foreclosure surplus | In a court foreclosure, the judge can order the property sold and the proceeds brought into court, where they are applied to the mortgage debt. We did not find a D.C. statute that says who holds any surplus, or how it is paid out, after a sale made under a power of sale without a court case; the D.C. Code's statutory mortgage form has the lender keep the unpaid debt and the sale costs from the proceeds and pay the surplus, if any, to the borrower. D.C. Code § 42-816; D.C. Code § 42-601 (form of mortgage, with or without power of sale) Show the source textthe equity court shall have authority, instead of decreeing that the mortgagor be foreclosed and barred from redeeming the mortgaged property, to order and decree that said property be sold and the proceeds be brought into court |
| Tax sale excess proceeds | D.C. sells tax liens: the Mayor holds a public auction and gives the winning bidder a certificate of sale. The owner can redeem at any time until a Superior Court judgment foreclosing the right of redemption is final, and the buyer cannot file that case until 6 months after the tax sale. For an owner-occupied Class 1A or 1B home with 5 or fewer units, the court appoints a trustee to sell the property after judgment; once the sale costs, the taxes owed and the tax sale buyer's expenses are paid, the buyer receives 10 percent of what is left or $20,000, whichever is less, and the remainder goes to the person or persons entitled to it. The statute does not set a deadline to claim that remainder; the court orders the distribution. D.C. Code § 47-1382.01(a), (b), (d); D.C. Code § 47-1360; D.C. Code § 47-1370(a); D.C. Code §§ 47-1346, 47-1348 Show the source textThe remainder to the person or persons (including, when appropriate, a decedent's estate) entitled to the balance, in proper proportion as determined by the trustee, or, when necessary, a court. |
| Rules for recovery companies | For property held by D.C.'s unclaimed property administrator, an agreement to locate or recover the property is enforceable only if it is in a record that clearly states the nature of the property and the services, is signed by the apparent owner, and states the value of the property before and after the fee. The agreement is void if it is entered into within 24 months after the property was paid or delivered to the administrator. D.C. sets no percentage cap, but an agreement for unconscionable compensation is unenforceable except by the owner, who may ask the Superior Court to reduce the fee. These rules do not apply to an owner's agreement with an attorney to pursue a claim for specifically identified property or to contest a denied claim. We did not find a D.C. statute that sets a fee limit or waiting period for recovering foreclosure sale surplus or a former owner's share of tax sale proceeds. D.C. Code § 41-163.01; D.C. Code § 41-163.02(a), (c)-(e); D.C. Code § 41-163.03 Show the source textan agreement under § 41-163.01 is void if it is entered into during the period beginning on the date the property was paid or delivered by a holder to the Administrator and ending 24 months after the payment or delivery |
How surplus funds arise in District of Columbia
When a home in District of Columbia is sold at a foreclosure sale or a tax sale for more than the debt and the costs of the sale, the money left over is surplus funds, also called excess proceeds or overage. It does not belong to the lender or to the buyer. Liens recorded behind the foreclosed debt are paid first, and what remains belongs to the former owner or to the owner's heirs. Read surplus funds explained for the general rules and liens and competing claims for the order of payment.
How a claim moves in District of Columbia
We confirm the sale figures in the public record, identify which office in District of Columbia is holding the money, and prepare and file the claim the way that office requires, advancing the costs. Because we bring the whole record with us, the claim does not stall on a missing document, a competing name or a missed date. See how to qualify for what we handle and what you provide. Notices about surplus are usually mailed to the last address on record, which is often the home that was sold, so do not wait for a letter. In District of Columbia that program is the Unclaimed Property Unit, Office of the Chief Financial Officer (District of Columbia).
If the owner has died
The right to the money belongs to the estate. Depending on the size of the estate, District of Columbia law may allow a simplified procedure, or a probate court may need to appoint a personal representative. See estate and heir recovery and probate assistance.
Working with a recovery company in District of Columbia
District of Columbia regulates this kind of service. For property held by D.C.'s unclaimed property administrator, an agreement to locate or recover the property is enforceable only if it is in a record that clearly states the nature of the property and the services, is signed by the apparent owner, and states the value of the property before and after the fee. The agreement is void if it is entered into within 24 months after the property was paid or delivered to the administrator. D.C. sets no percentage cap, but an agreement for unconscionable compensation is unenforceable except by the owner, who may ask the Superior Court to reduce the fee. These rules do not apply to an owner's agreement with an attorney to pursue a claim for specifically identified property or to contest a denied claim. We did not find a D.C. statute that sets a fee limit or waiting period for recovering foreclosure sale surplus or a former owner's share of tax sale proceeds. (D.C. Code § 41-163.01; D.C. Code § 41-163.02(a), (c)-(e); D.C. Code § 41-163.03)
Any agreement you sign, with us or with anyone else, has to follow that rule.
No out-of-pocket expense. Our only payment is a completion fee taken from the surplus once it is recovered. Where your state requires a licensed attorney for a court or probate filing, a licensed attorney handles it, and you still pay nothing out of pocket. Before you sign with anyone, read what a surplus funds scam looks like.
Questions about surplus funds in District of Columbia
Enough to prove who you are and how you held the property: identification, the deeds, any notice you received, and, if the owner has died, the estate paperwork. We do the rest for District of Columbia, from locating the funds to filing the claim.
In a court foreclosure, the judge can order the property sold and the proceeds brought into court, where they are applied to the mortgage debt. We did not find a D.C. statute that says who holds any surplus, or how it is paid out, after a sale made under a power of sale without a court case; the D.C. Code's statutory mortgage form has the lender keep the unpaid debt and the sale costs from the proceeds and pay the surplus, if any, to the borrower.
No out-of-pocket expense. We advance the costs and are paid a completion fee from the surplus only after it is recovered. Where a court or probate filing requires a licensed attorney, a licensed attorney handles it.