Virginia Foreclosure Laws

Virginia foreclosure laws allow for both non-judicial and judicial foreclosure processes, but non-judicial foreclosures and trustee foreclosure auctions are the most common procedures in this state. The foreclosure process in Virginia is also quite rapid. A non-judicial foreclosure with no complications can take under two months.

Pre-Foreclosure

Although judicial foreclosure is not common in Virginia, it does occur, especially if there is a problem with the title of the property or if there is some other complication. To start the judicial foreclosure, the lender must file the appropriate documents in court. If the court decides in favor of the lender, the court will order a foreclosure and will also outline the conditions and the terms of the foreclosure sale.

Most deeds of trust and mortgages in Virginia have a power of sale clause, which lets the lender sell the property without legal action. To start this foreclosure process, the lender sends the debtor a notice of default. This notice gives the debtor thirty days - the foreclosure period - to repay the default amount in order to avoid foreclosure proceedings. If the debtor does not resolve the default, the lender schedules a foreclosure auction.

The Foreclosure Auction in Virginia

Before the foreclosure sale, the lender must advertise a notice of auction (also known as the notice of sale). The deed of trust or mortgage may have specific requirements as to how the notice is to be advertised and published. In a judicial foreclosure, the court must approve the newspaper where the notice will be printed. The court must be satisfied that the newspaper has a large enough local circulation to be an effective medium for the notice. The notice of sale, in order to be valid, must also contain specific information. This information includes the time and place of the auction, the terms of the auction sale, and a description of the property. Unless otherwise indicated by the mortgage or deed of trust, the debtor must have a minimum of fourteen days notice before the auction takes place. Once a sale has been scheduled, it cannot be postponed. If the sale must be cancelled for any reason, the foreclosure process must begin anew.

The foreclosure sale itself is usually conducted by the trustee and usually occurs between 9 a.m. and 5 p.m. at the courthouse. The trustee tells the public the opening bid and bidding continues until no more bids are submitted. The winning bidder is given ownership of the property. There is no redemption period in Virginia but until the auction takes place the debtor can repay the amount owed and stop the foreclosure. If the highest bid does not pay off the debt, the lender can seek a deficiency judgment against the debtor to recoup more money.