Mortgage Note Investing in District of Columbia

The District of Columbia is among the fastest jurisdictions in the country to a clean exit. Foreclosure is non-judicial under the power of sale (D.C. Code §42-815), and a sale can complete in under two months with no post-sale right of redemption. In a dense, high-value urban market, that speed and finality are the core of the appeal.

The caution is the District's condominium super-lien. An association's assessment lien takes a six-month priority ahead of a recorded mortgage or deed of trust (D.C. Code §42-1903.13). Because so much of the District's housing stock is condominium, this is a live risk on a large share of files — confirm assessment status and price up to six months of priming dues into any condo deal.

Deficiency judgments are available, but the District's value proposition is speed plus clean title in a market where collateral values are high. Underwrite the condo super-lien on association-governed property, and otherwise treat D.C. paper as a fast, final non-judicial exit.