Virginia Foreclosure Law

In Virginia foreclosure law, Judicial Foreclosure and non-Judicial foreclosure both approaches are used. In Virginia state foreclosure timeline ranges up to 60 days. Virginia foreclosure law gives endorsement to deed of trust and mortgage as primary security instruments. Virginia foreclosure law authorizes the statutory right of redemption but these vary according to term and conditions. However deficiency judgments are also allowed by Virginia Foreclosure law.

By way of non-judicial or judicial foreclosure process lenders in the state of Virginia may foreclose on deeds of trusts or mortgages in default occurs. Judicial foreclosure is not often in use in Virginia State.

Judicial Foreclosure
The judicial foreclosure process necessitates the filing of a lawsuit by lender to obtain a court order to foreclose on a particular property. The property is auctioned off to the uppermost bidder condition the Court orders to foreclose. The judicial foreclosure process is mostly practiced when mortgage or deed of trust holds the clause “No power of sale”. Borrower may redeem the property in (240) days after the sale by paying the amount for which property has been sold along with (6%) interest.

Non-judicial foreclosure
In case homeowner defaults non-judicial foreclosure process allows the lender to sell the property to close balance of the loan. Non-judicial foreclosure method is favored when “power of sale clause” exists in the deed of trust or mortgage document. A “power of sale clause” in a deed of trust or mortgage means that in case of default borrower has pre-authorized the sale of property to pay off the balance on a loan. The power to sell may be concluded by the lender or their representative in conditions where a power of sale exists. The modus operandi for this Non-Judicial Foreclosure is elucidated in the “Power of Sale Foreclosure Procedure” listed below:

Power of Sale Foreclosure Procedure
If the power of sale clause states the time, place, and terms of sale then the procedure must be followed according to the specifications. And in case Power of sale clause has no specification regarding time, place and terms of sale than it will be carried out in following way:
•    Virginia decrees additionally require advertisements to be in print as minimum once a day for three days, said may be consecutive days. Above requirements are in accumulation to the advertising terms predetermined in the deed of trust. However If the deed of trust does not endow for advertising, then the advertisement shall be published once a week for four consecutive weeks.
•    Copy of advertisement and notice will be mailed to the borrower at least (14) preceding to foreclose sale.
•    Advertisement must contain the description of the property, requirements of mortgage, name of trustee the information providing and queries handling authorities, time, date and place of sale.
•    Sale can’t not be held (8) days earlier to the guide of fist advertisement and (30) days after the last publishment of advertisement.
•    Any once can bid at auction including the persons who has submitted one-price bid; sale will be made to the highest qualifying bidder. Trustee has right to accept written one-price bid. Any one present in bid may inspect the one-price written bids.
•    Trustee may require depositing the 10% amount of sale price. Percentage of deposit may vary if specified by deed of trust or mortgage other wise will remain as stated above.
•    Borrower may redeem the property by paying all payable amount along with the cost incurred and interest  any time before the foreclose sale. After the foreclosure sale borrower can’t redeem the property.
•    Lender has to stop the sale in case borrower has paid in full the entire outstanding amount along with costs.
•    Lender may sue for deficiency judgments without any limits.