Stop Foreclosure in Virginia


How to Stop Foreclosure in Virginia

Avoiding foreclosure in the State of Virginia can be tricky business. Virginia probates laws which apply to estates and wills which mean that whenever a homeowner fails to abide to the terms of payment for mortgages, the executor of the contract has the right to foreclose the property. Virginia is flexible when it comes to foreclosure, providing a judicial and non-judicial foreclosure option to property brokers and mortgage companies. As a homeowner down on luck, being crafty and proactive in negotiating the terms of your mortgage on the onset of foreclosure proceeding is your best option to protect your home.

Virginia enforces a title theory policy; this indicates that all property transactions that are on a mortgage, creditor or brokerage relationship will empower title rights to the creditor until full payment of the real estate is rendered. The borrowers submit to granting property rights to the creditor as part of a deed of trust in the form of a mortgage clause. The title of the brokered property is entrusted to the lending institution, which means that if a lender is unable to meet the payment terms of the mortgage, the creditor can seize possession or choose to foreclose the property to satisfy the loan stipulations, or otherwise referred to as “the note”.

Being smart about negotiating with lenders or creditors in extending a mortgage or even a remortgage can save your property from foreclosure. Be proactive in voicing out your inability to pay in advance if you think that you cannot meet the monthly mortgage payment for that pay period. It costs more to foreclose than to restructure a mortgage policy and creditors will be generally be more amicable in coming up with a stop payment plan, or an extension on fees as long as you have a good payment record and have expressed your enthusiasm to pay within a reasonable time frame extended by your creditor.

Synopsis of Virginia Foreclosure Laws

Judicial Foreclosure Available: Yes

Non-Judicial Foreclosure Available: Yes

Primary Security Instruments: Deed of Trust, Mortgage

Timeline: Typically 60 days

Right of Redemption: Varies

Deficiency Judgments Allowed: Yes

In Virginia, lenders may foreclose on deeds of trusts or mortgages in default using either a judicial or non-judicial foreclosure process.

Judicial Foreclosure

The judicial process of foreclosure, which involves filing a lawsuit to obtain a court order to foreclose, is used when no power of sale is present in the mortgage or deed of trust. Generally, after the court declares a foreclosure, the property will be auctioned off to the highest bidder.

The borrower has two hundred forty (240) days from the date of the sale to redeem the property by paying the amount for which the property was sold, plus six (6) percent interest.

Non-Judicial Foreclosure

The non-judicial process of foreclosure is used when a power of sale clause exists in a mortgage or deed of trust. A “power of sale” clause is the clause in a deed of trust or mortgage, in which the borrower pre-authorizes the sale of property to pay off the balance on a loan in the event of the their default. In deeds of trust or mortgages where a power of sale exists, the power given to the lender to sell the property may be executed by the lender or their representative, typically referred to as the trustee. Regulations for this type of foreclosure process are outlined below in the “Power of Sale Foreclosure Guidelines”.

Power of Sale Foreclosure Guidelines

  1. If the deed of trust or mortgage contains a power of sale clause and specifies the time, place and terms of sale, then the specified procedure must be followed. However, additional requirements must be met, as outlined below in section one (1).Even when the deed of trust makes allowances for advertising the foreclosure sale, Virginia Statutes require ads to be published no less than once a day for three days, which may be consecutive days. These requirements are in addition to the advertising terms stipulated in the deed of trust. If the deed of trust does not provide for advertising, then the ad shall be run once a week for four successive weeks. However, near a city, an ad on five different days, which may be consecutive, will be sufficient.

    A copy of the advertisement or a notice with the same information must be mailed to the borrower at least 14 days before the foreclosure sale.

  2. The foreclosure sale ad must include anything required by the deed of trust and may include a legal description of the property, a street address and a tax map identification or general information about the property’s location. The notice must include the time, place and terms of sale. It must give the name of the trustee and the address and phone number of a person who will be able to respond to inquiries about the foreclosure sale.Any time before the sale, the borrower may cure the default and stop the sale by paying the lien debt, costs and reasonable attorney’s fees.
  3. The sale, which may be held no earlier than eight (8) days after the first ad is published and no more than thirty (30) days after the last advertisement is published, is to be made at auction to the highest bidder. Any person other than the trustee may bid at the foreclosure sale, including a person who has submitted a written one-price bid. Written one-price bids may be made and shall be received by the trustee for entry by announcement of the trustee at the sale. Any bidder in attendance may inspect written bids. Additionally, the trustee may require bidders to place a cash deposit of up to ten (10) percent of the sale price, unless the dead of trust specifies a higher or lower amount.In the event of postponement of sale, which may be done at the discretion of the trustee, advertisement of such postponed sale shall be in the same manner as the original advertisement of sale.
  4. Once the sale is complete, the proceeds will go to: 1) the expenses of executing the trust; 2) to discharge all taxes, levies, and assessments, with costs and interest if they have priority over the lien of the deed of trust; 3) to discharge in the order of their priority, if any, the remaining debts and obligations secured by the deed, and any liens of record inferior to the deed of trust under which sale is made; 4) any remaining proceeds go to the borrower.

Lenders may obtain deficiency judgments, without limits, in Virginia.

Where to go to for Foreclosure Help

Richmond Field Office

600 East Broad Street, Third Floor
Richmond, VA 23219

Phone: (800) 842-2610
Fax: (804) 822-4984
TTY: (804) 771-2038

Jurisdiction: State of Virginia (Except as noted below under Washington, DC)

Everard Mattox
Acting Field Office Director

Office Hours: 8:00 a.m. to 4:30 p.m.
Monday through Friday

District of Columbia Field Office

820 First Street, NE, Suite 300
Washington D.C., 20002

Phone: (202) 275-9200
Fax: (202) 275-6381
TDY: (202) 275-6388

Jurisdiction: Washington, DC; City of Alexandria, VA; Fairfax County, VA; Arlington County, VA; Prince William County, VA; Loudoun County, VA; Montgomery County, MD and Prince George’s County, MD.

John E. Hall
Field Office Director

Office Hours: 8:00 AM to 4:30 PM
Monday through Friday

Stop Foreclosure Early

MetLife Home
(757) 651-0581
1305 Executive Blvd. Ste. 100
Chesapeake, VA

U&OB Notary Services
5561 S. Laburnum Ave
Henrico, VA

Prosperity Mortgage a division of Wells Fargo
4701 Columbus Street
Virginia Beach, VA

Bank of America Mortgage
7619 Little River Turnpike
Annandale, VA

Dynamic Capital Mortgage
1809 William St
Fredricksburg, VA

Credit Dispute Pro of VA
22634 Timberlake rdsuite c
Lynchburg, VA

Pineapple Lending Corp
1801 Reston Parkway
Reston, VA


Cash For Your Notes Today
1888 292 1803
PO BOX 7437
Woodbridge, VA

American Nationwide Mortgage
70 East Mosby Road
Harrisonburg, VA