West Virginia Foreclosure Law

In West Virginia foreclosure law, Judicial Foreclosure and non-Judicial foreclosure both approaches are used. In West Virginia state foreclosure timeline ranges up to 60 days. West Virginia foreclosure law gives endorsement to deed of trust and mortgage as primary security instruments. West Virginia foreclosure law does not authorize the statutory right of redemption. Deficiency judgments are also not allowed by West Virginia Foreclosure law.

By way of non-judicial or judicial foreclosure process lenders in the state of West Virginia may foreclose on deeds of trusts or mortgages in default occurs.

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”.

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:
•    Notice of sale must be posted on the court hose door, on property and on other two different places at least (20) days before the sale.
•    Said notice must also be furnished to the borrower and to secondary lien holders at least (20) days prior to the sale.
•    Notice of sale must also be published in the news paper in grade iii legal publications each week for (4) successive weeks.
•    Said notice must contain the date, time, and place where proposed sale will be conducted, names of borrower and lender, description of property, recording information of deed, and specifications of foreclose sale.
•    Sale will be conducted at said time in courthouse; highest bidder will qualify the sale. Qualifying bidder has to pay the 1/3 rd of the bid amount at that time sale except deed has the specifications regarding it.
•    Borrower has no rights to redeem in West Virginia State nor has the lender to sue for deficiency judgment.