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Judicial foreclosure available: Yes
Non-Judicial foreclosure available: Yes
Either a judicial foreclosure in the form of a bill of
equity, or a sale by advertisement pursuant to a power of sale clause in a deed
of trust is permitted in Virginia.
Judicial Foreclosure
In Virginia, a mortgage may be for closed by filing a
type of lawsuit known as a bill in equity When and if necessary, a deed of
trust could also be foreclosed through court action. In either case, a court
order ca be issued which specifies the terms and conditions of the sale, which
are controlled by the mortgage contract Commissioners are appointed to handle
such sales. The court must confirm the sale.
Non-judicial Foreclosure
The trustee under the deed of trust may accelerate the
note, give the necessary preliminary notices, and arrange the fort closure
sale.
Preliminary Notices
Contents
The foreclosure sale ad must include anything required
by the deed of trust and may include a legal description of the property, a
street address and a tax map identification or general information about the
property's location. The notice must include the time, place and terms of sale.
It must give the name of the trustee and the address and phone number of a
person who will be able to respond to inquiries about the foreclosure sale.
Advertising
Even if the deed of trust provides for advertising, ads
should be published no less once a day for three days, which may be consecutive
days. If the deed of trust does not provide for advertising, then the ad shall
be run once a week for four successive weeks. However, near a city, an ad on
five different days, which may be consecutive, will be sufficient.
Mailing
A copy of the advertisement or a notice with the same
information must be mailed to the borrower at least 14 days before the
foreclosure sale.
Sale Procedures
Time of Sale
The sale must be made no earlier than eight days after
the first ad and no more than 30 days after the last advertisement.
Special Procedures
Written one-price bids may be made and received by the
trustee for entry by announcement at the foreclosure sale. Any bidder who
attends the foreclosure may inspect the written bids.
Manner
The sale is to be made at auction to the highest bidder.
Unless otherwise required by the deed of trust, the trustee may require a
bidder to make a 10 percent cash deposit. The trustee must apply the proceeds
of the sale first to expenses of the sale, including a 5 percent trustee's
commission, second to unpaid taxes, assessments and levies, third to liens in
order of their priority and the balance, if any, to the borrower. The trustee
will execute and deliver a deed to the buyer.
Deficiency
A lender may pursue a borrower for a deficiency judgment
in Virginia. No limits are imposed.
Redemption
In a court-ordered foreclosure sale the court may give
the borrower a redemption period. Otherwise, Virginia does not give
borrowers redemption rights. |
