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Virginia Foreclosure Law
Virginia law permits both in-court and out-of-court
foreclosures, which are more often used. The typical
out-of-court foreclosure in Virginia takes less than two months.
Pre-foreclosure Period
The in-court foreclosure process, although rarely used,
begins when the lender files a court document starting the
foreclosure process. A court order can be issued which specifies
the terms and conditions of the sale. After the court declares a
foreclosure, the property will be auctioned, according to the
terms set by the court. The more common foreclosure process is
used when the mortgage or deed of trust allows the lender to
sell the property without going through the courts. The lender
initiates this type of foreclosure by scheduling a foreclosure
sale. Before doing this, the lender sends a notice of default to
the borrower, giving them 30 days to pay off the default and
prevent foreclosure.
Notice of Sale / Auction
Once the lender schedules the foreclosure sale, they must
properly advertise the sale and notify the parties involved. In
Virginia, the Notice of Sale publication dates vary based on the
requirements of the deed of trust or state statute. The
newspaper where the notice of sale is published must be approved
by court order certifying it has sufficient circulation within
the county or city. The notice must include a legal description
of the property, the terms of the sale, and the location, date,
and time of the sale. Borrowers must receive at least 14 days
notice before the foreclosure sale. The trustee typically
conducts the sale at the local courthouse between 9 a.m. and 5
p.m. The trustee announces the opening bid at the sale and may
accept higher bids, with the property selling to the highest
bidder. If no one bids, the foreclosing lender will win the
bidding with the opening bid. The trustee completes the
necessary documents to transfer ownership of the property to the
highest bidder. The sale can’t be postponed, but it may be
canceled, in which case the trustee would need to start the
foreclosure process at the beginning to schedule a new sale. In
general, once the sale is final the borrower cannot redeem the
property, but the lender may cancel the sale if the borrower is
able to pay off what is owed. A lender may pursue a borrower for
a deficiency judgment if the highest bid does not pay off the
total amount due plus applicable expenses.
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