Alexandria – Virginia Foreclosure Laws

As per the state law of Virginia, all those homeowners and tenants who are lacking behind on their mortgage payment will receive just one official notice – a 14-day notice of sale. This notice will be treated as a final warning before the Alexandria – Virginian citizen loses their home to foreclosure.

Luckily, in most cases, the bank is prevented by the federal law from selling the house shortly after a Virginian citizen misses a payment. As per the law, the bank is liable to wait a total of 120 days before they can start the foreclosure. Around this time, the homeowner can file for loss mitigation (this is an alternative for foreclosure), or pay the amount overdue. An example of Loss mitigation can be applying for a loan modification.

120 Days To Apply Before The Bank Can Start The Foreclosure

As per the federal law, the company handling the loan account (a servicer) is not allowed to hold a foreclosure before the 120 days the borrower is allowed for. The sufficient leverage time period of 120 days is given to the borrower so that they can present a loss mitigation application. As soon as the bank gets the borrower’s complete application, the bank starts their process of evaluating the application, updating the outcome to the borrower, and wait for the 120 days appeal timeframe to pass away before the foreclosure process is started.

What Are The Virginia Foreclosure Types

Although many states of America allow time for a foreclosed homeowner to buy their home, back afterward the foreclosure auction. However, in the case of Virginia, post-foreclosure redemption is not allowed.

As per the Virginia law, the borrower is allowed for two types of foreclosure:

  1. Judicial foreclosure
  2. Nonjudicial

Judicial Foreclosure:

As per this foreclosure method, when the bank has filed a litigation claiming that they are entitled for the house to be up for auction, the court system will be implemented there and then only. The court will consider and analyze the evidence, after which the court will approve that the foreclosure is valid and proper. After which, the court will pass a verdict that will permit the bank to enable and start the foreclosure sale. The proceeds of the sale will be applied to the mortgage debt. If in the case where no person buys the property, it will automatically be forwarded to the lender.

Nonjudicial Foreclosure:

In the case of a nonjudicial foreclosure, the borrower will not necessarily be sued in court by the lender before the house is foreclosed. As per the guidelines stated in the state law, the steps will be followed accordingly. When the entire foreclosure process is done, the bank has the power and authority to sell the house at a foreclosure sale. Majority of the nature of foreclosures occurring in Alexandria, Virginia, are nonjudicial.

Ask the Help of Your Alexandria – Virginia Foreclosure Defense Lawyer

There are ways a borrower can stop a foreclosure.

You must get the legal advice and help from your Alexandria – Virginia Foreclosure Defense Lawyer as early as possible. Make sure that you do before your auction date is decided.