Virginia Foreclosure Laws

Foreclosure Laws in Virginia

Virginia foreclosure laws allows for both judicial and non-judicial foreclosure proceedings, depending on the specification of the mortgage in question. However, non-judicial proceedings are much more common, as most mortgages contain a Power of Sale clause enabling the lender to pursue foreclosure themselves. Generally, non-judicial foreclosures in Virginia take less than two months to complete.

For the most part, court foreclosures are rare in Alabama, as most mortgages carry a Power of Sale clause, which allows a lender to pursue a foreclosure without obtaining a court order. Judicial proceedings are necessary when no such clause exists in the mortgage, or when title problems exist complicating the issue. This process involves filing a suit in court and moving forward with a sale according to the procedure the court dictates.

For mortgages requiring judicial foreclosure proceedings, the lender must file a notice of default with the local court. The court will then rule and issue an order outlining the terms and schedule of the foreclosure sale. The property will then be auctioned off according to this schedule.

Non-judicial foreclosures generally begin after a homeowner has gone into default. The lender must then issue the homeowner a Notice of Default, informing them of their intention to foreclosure. If the homeowner does not respond to the notice of default within 30 days, the lender schedules a date for a foreclosure sale.

Before a sale can take place, the lender must properly advertise the sale based on the specifications of the individual mortgage or deed of trust.

The Notice of Sale must contain the time, date and location of the sale as well as its terms and a description of the property. This generally must be published for a certain amount of time in a local newspaper. The original homeowner must be served with a copy of the Notice of Sale at least 14 days before it is scheduled to take place.

A sales trustee oversees the foreclosure auction, which is commonly held between 9 am and 5 pm at the local county courthouse. The property is awarded to the highest bidder. If there are no bidders, the property will be awarded to the lender, and the trustee then transfers ownership of the property to them. Foreclosure sales in Virginia cannot be postponed. In order to reschedule a sale, the lender must start the entire process of foreclosure over from the beginning.

Virginia foreclosure law offers no required period of redemption for the original homeowner, but they may be able to buy back the property from the lender by providing the amount owed.

If the amount of the winning bid does not satisfy the debt owed, the lender may seek a deficiency judgment for the total amount due.