Foreclosure is never a good thing. It can mean losing your home and all the belongings inside, and it can take a long time to get through the process. The best way to get through the foreclosure process in VA is to work with an experienced lawyer. They will be able to help guide you through your case, understand your rights, and work with you to defend yourself. Here are some important things to know about the foreclosure process in VA.
Understanding the Two Parts of Mortgage Loans in Virginia
There are two documents signed when buying residential real estate in VA. The first is a promissory note with your stats promise to repay the loan according to the terms. The second, a deed of trust, is the document giving the lender a security interest in the property and often includes a clause for the power of sale.
In the case that you fail to make the payments, the lender will issue a breach letter. This letter will tell you that you have failed to meet your obligations and the lender will take steps to evict you.
When Does the Foreclosure Process Start?
The loan must be over 120 days delinquent before the servicer can officially begin a foreclosure. Still, if you violated a due-on-sale clause or in the case the servicer joined a foreclosure action of a superior or subordinate lienholder, it might begin sooner than 120 days.
Understanding State Foreclosure Laws in Virginia
Each state has different laws governing the foreclosure process, so it is important to consult with an experienced lawyer if you are facing foreclosure in VA. Most foreclosures in VA of nonjudicial. There are some minimum steps, including sending you a notice and publishing the notice of sale in a public newspaper.
Your Notice of the Foreclosure
The lender must give you written notice by mail of the foreclosure before taking any steps to evict you, no earlier than 60 days before the sale of the home if is owner-occupied. This notice will usually include a date and time for a foreclosure sale, and a description of the property, and has to include relevant information about how to contact of HUD-approved housing counselor along with information regarding legal aid.
The Required Publication in a Newspaper
The lender must publish a notice of the foreclosure in a local newspaper. This notice will include the date, time, and location of the foreclosure sale, as specified by the loan contract. In the case the loan agreement doesn’t stipulate publishing requirements, the notice will be published every week for a total of four weeks, or alternatively, on five consecutive days.
The Foreclosure Sale Process
The foreclosure sale is the final step in the foreclosure process. At the foreclosure sale, the lender will sell the property to the highest bidder. You are prohibited from attending the foreclosure sale, and you have the right to object to the sale if you believe the price is too high. The sale can be held only eight days or more after the first advertisement of the sale, and no later than 30 days once the last advertisement is published.
The Right to Reinstate Before the Foreclosure Sale in Virginia
If you are behind on your mortgage payments, you do not have the right to reinstate your loan before the foreclosure sale according to state law. However, your deed of trust might include a deadline for completion of reinstatement, sometimes lenders will have some flexibility to allow you to reinstate. However, this right is limited, and you may have to pay a penalty for exercising it.
How Deficiency Judgments Following the Sale in Virginia Work
The difference between any sale price and the total debt amount is known as a “deficiency balance”. If this happens, Virginia law allows the lender to get a personal judgment (deficiency judgment) against the borrower. They must file a new and separate lawsuit once the foreclosure sale is completed to get one.
The Redemption Period After a Foreclosure Sale in Virginia
Virginia does not have any law for a post-sale redemption period, so once the foreclosure is completed, you will not be able to redeem the home.
When Do You Have to Move Out After a Foreclosure in Virginia?
Once the foreclosure sale is completed, the purchases can start a separate unlawful detainer, also known as an eviction, action. This would allow for the homeowner to receive a five-day notice to evict the property in most cases. It is possible to stay in the property until forcibly removed through that process, but usually, it is better to leave before that deadline.
Get Help from a Virginia Foreclosure Lawyer Like the Law Office of Robert S. Brandt
If you are facing foreclosure in VA, it is important to consult with an experienced lawyer. They will be able to help you understand your rights and navigate the complicated foreclosure process. The Law Office of Robert S. Brandt can help you get through this tough time, guiding you through the process and defending your rights.
When it comes to foreclosure, the devil is in the details, with state laws governing the process varying significantly from one jurisdiction to the next. If you are facing foreclosure in VA, it is important to consult with an experienced lawyer who will be able to help you understand your rights and navigate the process.
If you are facing foreclosure on your home, contact me for an initial consultation. We will review your case and help to the best of our abilities.