No one wants to go into foreclosure, but understanding the process can make it easier for you. It’s also a good idea to get Virginia foreclosure help from an experienced professional who can help you through the process. By learning more about the process, you can be better prepared and you may even find solutions that can help ease the stress that foreclosure can cause. This will educate you on the process and teach you about relevant state and federal laws.
Due to federal laws, servicers cannot start a foreclosure until a homeowner is more than 120 days delinquent on the loan though there are some special circumstances that can be exceptions to this law. Federal laws also require servicers to work with the homeowners in a loss mitigation process to avoid the foreclosure.
Generally, foreclosures in Virginia are a nonjudicial process. The person who is foreclosing on the home must serve you the notice of sale personally or by mail. If served by mail, this mail needs to be received no less than 14 days prior to the sale. They are also required to publish the notice in the local newspaper as discussed in the loan agreement, but not less than once per week for 2 weeks or 3 days if published consecutively. Sometimes the loan agreement doesn’t have a publication agreement, in which case this notice needs to be published once a week for 4 weeks or 5 days consecutively.
Unfortunately, there is no law in Virginia that entitles homeowner the right to reinstate their loan prior to the sale. However, there may be a part of your loan contract that might give you this right. There are also no laws in Virginia that allow for a post-sale redemption period after there is a nonjudicial foreclosure.
If you do end up in foreclosure, you may also have to be concerned with a deficiency judgement, where you owe the deficit of the loan after the foreclosure sale. What this means is if the bank sells your home for $180,000 but the loan amount was for $200,000, you will owe the bank that deficit of $20,000. The lender will need to file a lawsuit after the nonjudicial foreclosure before they can collect this deficiency. If they win their case, they can garnish your wages and other income until the deficit is paid off. If you have a bankruptcy case going on at this same time, you can discharge this deficiency judgement in your case.
This is a complicated process, but there is also help at your disposal. There are various programs that are meant to help, such as the MHA (Making Home Affordable) program or special programs for veterans, which you may be eligible for. By contacting a Virginia foreclosure expert, they can help you through this process so that you can get the best possible outcomes in your case. They can walk you through the process and answer any questions that you may have about the next steps. You do have options and only an experienced professional can help.