According to the state law of Virginia, any homeowner and tenant behind their mortgage payments will only get one official 14-day notice of sale. Richmond – Virginians must treat this notice as a final warning before they lose their house to foreclosure.
Fortunately, in the majority of these cases, the federal law intervenes the bank from putting the house on sale shortly after the Richmond – Virginian citizen fails on the payment. As per the decided law, the bank must wait for 120 days before the foreclosure can be started. At this time around, the homeowner can either pay the amount overdue, or petition for loss mitigation (a substitute for foreclosure). Filing for a loan modification is an example of loss mitigation.
120 Days Before the Bank Starts the Foreclosure
As per the defined federal law on foreclosure, a servicer (the company handling the loan account) will not be allowed to start a foreclosure before the borrower’s 120 days’ time period has passed. The borrower is given this time period of 120 days so that they can file a loss mitigation application. Once the bank receives the borrower’s whole application, they start 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 Categories?
Although there are many states in America who give time to the foreclosed homeowner to buy their house back after the foreclosure auction. However, in the state of Virginia, post-foreclosure redemption is not allowed.
As per the Virginia law, the borrower is allowed for two types of foreclosure:
When the bank has filed a litigation claiming that they are entitled to the house to be up for auction, the court system will be implemented there and then only. The court will analyze and consider the presented evidence, after which the court will approve that the foreclosure is valid and proper. The court will pass a judgment that will authorize the bank to permit and start the foreclosure sale. The income from the sale will be applied to the mortgage debt. In case if no individual purchases the property, it will automatically be forwarded to the lender.
For nonjudicial foreclosure, the lender will not necessarily sue the borrower in court before the house is foreclosed. As per the defined state law, the steps will be followed accordingly. When the whole foreclosure process is over, the bank will be in power and authority to sell the house at a foreclosure sale. Majority of the nature of foreclosures occurring in Richmond – Virginia, are of nonjudicial.
Ask the Help of Your Richmond – Virginia Foreclosure Defense Lawyer
There are some defined ways a borrower can stop a foreclosure. You need to get legal advice and help from your Richmond – Virginia Foreclosure Defense Lawyer as soon as possible. Make sure that you do before your auction date is decided.