Foreclosure Rules in Virginia
Virginia foreclosure rules are in place to provide lenders with a set of procedures to follow when a borrower enters into default on a mortgage or deed of trust. The foreclosure process moves quickly, taking as little as 60 days from start to finish according to Foreclosure Law's website. These rules also provide some recourse for borrowers who are able to reclaim the foreclosed property.
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Judicial Foreclosure
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In Virginia, if a lender elects to foreclose on a mortgage or deed of trust by means of judicial foreclosure, the lender is required to file a civil suit against the borrower. A court hearing is held in which the lender presents evidence of the borrower's delinquency. If the borrower has any evidence disputing his lender's claims, such as check copies or other proof of payment, he is required to present them at this time. If the judge rules in favor of the bank or other lender, the mortgage is foreclosed on and the home is required to be sold by means of public auction.
Nonjudicial Foreclosure
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Nonjudicial foreclosure is allowed in Virginia when a "power of sale" clause exists in the mortgage or deed of trust. This clause details the agreed upon procedure the bank is required to follow in foreclosing on the mortgage or deed of trust. No court hearing is required when a power of sale clause exists.
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Power of Sale Rules
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Under power of sale rules in Virginia, when a lender elects to foreclose on a home, it is required to give 14 days advance notice to the borrower of the intent to advertise the home for public auction. The sale of the home is required to take place no earlier than eight days after the first advertisement is run for the home in question and no later than 30 days after the last advertisement is posted.
Right of Redemption
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Regardless of which method is used to conduct foreclosure proceedings on a mortgage or deed or trust, the foreclosure rules are required to allow a homeowner an opportunity to reclaim his home. A homeowner has 240 days from the date the home is sold to reclaim his property by paying the amount for which the property was sold and an additional 6 percent interest. This figure may be quite substantial, depending on how much was paid for the home during its foreclosure sale.
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