Virginia Foreclosure Laws
Judicial Foreclosure Available: Yes
Non-Judicial Foreclosure Available: Yes
Security Instruments: Mortgage, Deed of Trust
Right of Redemption Period: Varies
Deficiency Judgments Allowed: Yes
Time Frame: 60 Days
Public Notice: Publication
Virginia is considered to be a title theory state, which means that a property title will remain in trust until the loan is paid in full. In the state, a title can be secured by either a mortgage or a deed of trust. Both document serve the same purpose and generally have the same terms.
The foreclosure laws in Virginia permit both judicial and non-judicial foreclosure methods. The state has varying right of redemption periods. Virginia does allow for deficiency judgments when a foreclosure is sold for less than what was owed on it. The borrower will be held responsible for the difference in price.
Types of Foreclosures Allowed in Virginia
Judicial foreclosure, also known as foreclosure by judicial sale, involves selling the defaulted property under court supervision. In order for a judicial foreclosure to be possible, no power of sale clause may be present in the loan documents.
The process begins with the lender filing a lawsuit against the borrower. If the court declares a foreclosure, then the property will be sold at auction to the highest bidder. The borrower will have two hundred and forty (240) days from the date of the sale to reclaim the property by paying the amount the property sold for plus six (6) percent.
Non-judicial foreclosure, which is also known as foreclosure by power of sale, does not require court supervision to sell the property. In order for non-judicial foreclosures in Virginia to be possible, the loan documents must contain a power of sale clause, which authorizes the lender to sell the property in the event of default to be able to recover what is owed on the property.
There are two ways in which a non-judicial foreclosure in Virginia can proceed. If the power of sale clause states a specific time, place, and outlines terms of sale, then the lender must follow the procedure that is stated. If there is no specification, then the following guidelines must be followed:
1. The notice of sale must be published at least once a day for three (3) days, regardless of the provisions in the mortgage or deed. If there are specific details set forth in the deed or mortgage for advertising, then they must be adhered to. If not, then the notice must be published once a week for four (4) consecutive weeks.
2. The sale advertisement must include a legal description of the property, time and place of the sale, trustee’s name, and other additional and relevant details.
3. A copy of the notice must be mailed to the borrower at least fourteen (14) days prior to the sale.
4. If they wish, the borrower may stop the sale at any point before the scheduled date by paying off the default in full, along with any additional costs.
5. The sale may not be held earlier than eight (8) days after the first advertisement has been published and no more than thirty (30) days after the last publication. Anyone except the trustee may bid at the sale. Bidders may be required to place a cash deposit up to ten (10) percent of the sale price.
6. The sale may be postponed at the trustee’s discretion by following the same advertising procedure as the original sale.
Working with a Foreclosure Attorney in Virginia
The current state of the economy has left many homeowners struggling financially. Although the thought of losing your home is a devastating one, there is still a way to stop foreclosure on your property, even if you have already received a foreclosure notice. Speak to a skilled foreclosure lawyer in Virginia for assistance right away to prevent your home from being seized.
Foreclosure attorneys fight to make sure you don’t lose your home. They will devise a plan of action based on your financial needs to present to your lender in lieu of foreclosure. Some examples include short sale, refinancing or mortgage modification. Whatever the plan, you can be sure that your case will end with the best possible outcome when you work with a top team of Virginia foreclosure lawyers.
Whether you defaulted because of a pay cut, job loss or medical reasons, you can still stop foreclosure on your home. Contact a leading foreclosure attorney in Virginia today to get started on your case and protect your rights.