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Released: July 14, 2011

D.C. alters foreclosure law, adds consumer rights

Source: Cezary Podkul, Washington Post (Free Registration)

The D.C. Council enacted emergency legislation Tuesday to amend a controversial clause in its foreclosure mediation law that threatened to stall the sale of foreclosed affected homes across the city. The move came just days after The Washington Post reported that two large title insurers, which account for nearly 80 percent of the D.C. market share, stopped insuring sales of foreclosed homes because of concerns over the law. The change will make it easier for buyers of foreclosed homes to obtain loans, because title insurance, which protects mortgage lenders from challenges to their rights to a property, is an essential ingredient in the home-buying process. That, in turn, could help stabilize District prices by speeding the sales of homes in the foreclosure pipeline.

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