Under Virginia law, foreclosures take place out of court. Virginia is a non-judicial state, so the trustee simply sells your property, usually at a public auction to the highest bidder. Before doing this, the trustee must follow the rules set out in their trust deed. The predominant type of foreclosure in Virginia is not judicial.
Non-judicial foreclosures do not involve the courts, but instead require what is known as a “sale under the power of sale.” When you sign a mortgage for the first time, it generally contains language called a “power of sale clause”. This allows a lawyer to foreclose a property after it's been unfulfilled, in an attempt to repay the loan in arrears (sometimes called a “promissory note”). To employ this type of foreclosure, legal documents must contain the power to sell provision, as this is a non-judicial process with extremely strict notification requirements. Real estate investors buy all types of properties under any conditions and under any circumstances, including foreclosure.
In a foreclosure, a judgment of deficiency can be sought after the property is sold for less than the amount secured by the mortgage. If you're having problems with your mortgage, contact a Virginia foreclosure defense lawyer online to learn about your options. In fact, if a foreclosure sale is scheduled for the next day or something like that, the best way to stop the sale right away is to file for bankruptcy. If the lender opts for non-judicial foreclosure, they must complete the out-of-court procedures described in state statutes.
Fortunately, even if you fall behind on your mortgage payments, there are still ways to prevent foreclosure. The non-judicial foreclosure process is used when there is a power of sale clause in a mortgage or trust deed. Federal mortgage service laws also prohibit double monitoring (initiating a foreclosure while a full loss mitigation request is pending). A judicial foreclosure begins when the lender files a lawsuit asking a court for an order allowing a foreclosure sale.
This blog is here to provide you with helpful answers to some of the most common questions related to short selling and foreclosure in Virginia. If you have questions about the Virginia foreclosure process or want to learn about potential defenses to foreclosure and possibly fight foreclosure in court, consider talking to a foreclosure lawyer. A copy of the foreclosure notice must be attached to the affidavit and both documents must be provided to each potential bidder in the foreclosure sale. In Virginia, the lender can file a lawsuit after a non-judicial foreclosure to obtain a deficiency judgment against you.
If you're a homeowner in the state of Virginia, here's what you need to know about the Virginia Foreclosure Act. Generally, servicing entities must offer borrowers opportunities to mitigate losses, consider every step of foreclosure, and comply strictly with foreclosure laws.