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When facing foreclosure, it can be confusing and frightening trying to navigate the unknown.  Below is a description of what to expect in the foreclosure process in the state of Virginia. 

• Virginia is a non-judicial state meaning, there is no court date. A judge will not hear your case and adjudicate the matter. A trustee appointed by the lender, generally an attorney or professional foreclosure company, simply sells the home at auction.  
• Foreclosure generally begins at 120 days of delinquency.  
• Although most lenders send a pre-foreclosure notice, they are only required to notify you 60 days before the sale date of the property. 
• A notice must be published in a local newspaper no less than once weekly for 2 weeks or for 3 consecutive days.  
• The sale must take place between 8-30 days after the last publication of notice. 
• The date and time of the auction or sale is the foreclosure. 
• If you plan to reinstate the loan, sell the home, or file for bankruptcy, it MUST be done prior to the date of foreclosure. Virginia does not offer a redemption period. That is the deadline without exception.  
• At the time of auction, the lender will generally make a “credit bid.” This is the lender saying that if they do not receive a bid above this price, they will claim the home using your debt as the payment. If this is the highest bid and it is owned by the lender it is called “Real Estate Owned” or “REO.” 
• If a third party out bids the lender, they become the owner.  
• If the highest bid, even if it is a credit bid, does not cover the principal mortgage balance, interest accrual, late fees, and fees incurred by the foreclosure process, a deficiency judgment can be filed against you allowing continued collection action against you. (i.e.: liens on other homes, garnishments, and interrogatories). 
• If the highest bid is above the balance owed the lender, any subsequent liens will be paid, any remaining balance is considered “surplus funds” or “surplus money.” The surplus funds belong to you.  
• Once the home is foreclosed, the new owner may opt to provide you with a 5 day notice to vacate or may immediately file an unlawful detainer within the jurisdiction of the home beginning the eviction process.  

Remember, the sooner you begin to explore options and decide the best avenue for you, the better your chances for a positive outcome.  Some options are listed below. 

• Immediately request and pay the reinstatement. This is the total amount due to bring the loan completely current. Once that is done, you must resume making your monthly mortgage payments on time. Remember, in the state of Virginia, the deadline to reinstate your loan is determined by the Deed of Trust you signed when you originally acquired the loan.  
• Request a loan modification. Do this as soon as you reach at least 30 days of delinquency. If approved, a loan modification may reduce the monthly payments by reducing the interest or extending the term of the loan. Be sure to carefully review the modification offered as it may include a balloon payment or accelerate interest over time. This is a lengthy process and time is of the essence.  
• Request a Forbearance Agreement. This is will temporarily pause or reduce the monthly mortgage payment. This is not forgiven. At the end of the forbearance period you will either have to pay the full amount or will be allowed a short term repayment option. It is dependent on the policies of your lender. This does adversely affect your credit.  
• List your home for sale with a realtor. Remember, you will be expected to make repairs and pay commissions and closing costs. This process takes a minimum of 30 to 45 days and could take months depending on the location and condition of the home. 
• File for bankruptcy. This immediately stops a foreclosure.  
• Contact us for a quick, cash, offer.