What’s the Foreclosure Process in Virginia?

What's the Foreclosure Process in Virginia

Foreclosure is the legal process where a lender seizes a property due to a failure to pay monthly mortgage payments. The foreclosure process varies from state to state and depends on the type of loan. If you own a home in the state of Virginia, here is what you need to know about Virginia Foreclosure Law.

Virginia Foreclosure Law

According to Virginia law, those homeowners who are behind on the monthly mortgage payments receive only one official notice before losing their property to foreclosure. This notice is known as a notice of sale. The good news is that in most cases, federal law does not allow lenders to sell properties shortly after a missed mortgage payment. A lender must wait 120 days before starting the foreclosure process. 

Virginia law also requires lenders to work with homeowners who are late with mortgage payments in a loss mitigation process. A lender must evaluate the loss mitigation application that they receive from a borrower, inform them about the outcome, and wait until the appeal period expires before starting the foreclosure process. 

What Are the Types of Foreclosure in Virginia?

There are two types of foreclosure in the state of Virginia — judicial and nonjudicial. Here is an explanation and description of each of them:

  • Judicial foreclosure. This type of foreclosure takes place through the court system. In order to get the judicial foreclosure started, a lender must file a lawsuit. If the court agrees that foreclosure is proper, the bank can start the foreclosure process and apply the proceeds toward the homeowner’s debt. 
  • Nonjudicial foreclosure. This type of foreclosure occurs outside the court system, meaning that a lender does not have to file a lawsuit in order to start the foreclosure process. Nonjudicial foreclosure does not take long — usually a few months. While judicial foreclosure may take anywhere from a few months to several years to complete. 

Most foreclosures in the state of Virginia are nonjudicial, and here is how the process works.

The Process of Nonjudicial Foreclosure in Virginia

The process includes several steps:

  • Foreclosure notice. After missing a mortgage payment, a homeowner receives a notice of sale. According to an amendment from March 12, 2021, lenders must mail a notice no less than 60 days before the sale if the property is occupied. Also, starting October 1, 2012, a notice of sale must also include the information about legal aid that a homeowner can receive and how to contact a HUD-approved housing counselor — a professional who can advise homeowners on preventing foreclosure. 
  • Newspaper publication. The bank is required to publish a notice of sale in a newspaper no less than once a week or three days if it is published on consecutive days.

Many states give borrowers the ability to prevent the foreclosure process by “reinstating” their loans. Reinstatement is the process where a borrower gets caught up on the overdue amounts in one lump sum in order to stop the foreclosure. Unfortunately, Virginia law does not allow borrowers to reinstate their loans. 

Sell Your Virginia Home to a Home Investor to Avoid Foreclosure

Foreclosure is one of the worst things that can happen to homeowners. Fortunately, even if you are late on your mortgage payments, there are still ways to prevent foreclosure. One of the easiest and most efficient options is to sell your home to a home investor. Home investors purchase all types of properties in any condition and under any circumstances, including foreclosure. 

Virginia Home Buyers is one of these home investors purchasing properties in the state of Virginia. If you own a foreclosed home in Virginia that you want to sell as quickly as possible, Virginia Home Buyers is the right company to contact. We are not afraid of difficult situations and know how to deal with foreclosed properties, so you can trust us. All you need to do is to complete the form on our website, schedule a walkthrough with us, and receive a cash offer. If you have any questions about our home-selling process, do not hesitate to give us a call. We will be glad to provide you the information you need.

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