Are you facing foreclosure? Are you wondering if you should take that we buy houses Hampton roads offer on a foreclosure property? If you fear facing foreclosure in Virginia, it’s essential to know everything there is to remember to safeguard your property and your interests.
In this blog, we have covered the basis of foreclosure in Virginia.
What is Virginia’s Most Common Type of Foreclosure Procedure?
In Virginia, foreclosures are typically settled outside of the court. A third party manages the entire process. Such cases are referred to as non-judicial foreclosure. On the other hand, those foreclosures that enter the court are called judicial foreclosure.
Notice of the Foreclosure
When it comes to non-judicial foreclosure, the bank is not required to do much. The Virginia law requires the bank to send a pre foreclosure notice and publish a note of the sale of the house in the newspaper.
The bank foreclosing the house or trustee must deliver the notice of sale to the homeowner at least 14 days before the date of sales.
Federal Law Usually Requires a 120-Day Pre foreclosure Period
According to federal law, the loan provider cannot start the process of foreclosure before 120 days of delinquency by the borrower. The 120 days is given to the borrower to file a loss mitigation application. Once the loan provider receives the request, they must review it and notify the borrower. They must wait for the appeal period to expire before filing a foreclosure process. Also, the bank or third-party trustee must publish the notice of sale in the vernacular once per week.
Can One Reinstate Before the Foreclosure Sale in Virginia?
Reinstating happens when the defaulter pays the missed interest with additional fees to prevent foreclosure. Under Virginia law, there is no provision to reinstate the loan. However, your mortgage contract may have a deadline specified for the reinstatement of the credit.
Right of Redemption After Foreclosure in Virginia
In many states, there is a provision to redeem your property within a dictated time before the foreclosure ends. In Virginia, there is no provision to take back or redeem your property post-sale.
Virginia Deficiency Judgment Laws
You might wonder what if the sell my house fast for cash deal gives you more money than the mortgage debt. When this happens, the difference in money is called “deficiency.”
In many states, the bank foreclosing the house seek a deficiency judgment against the defaulter while other states have anti-deficiency law.
However, in Virginia, once the foreclosure is over, the bank has to file a different lawsuit to get a deficiency judgment against the party that borrowed the loan.
Notice to Leave After the Foreclosure Sale
Once the non-judicial foreclosure is over, the new purchaser of the house may send an eviction notice to the defaulter. The default homeowner has five-day time to leave the property.