Navigating the foreclosure process in Virginia is an important part of understanding your own home foreclosure.
With Covid-19 in full swing and the reaction of our Governor closing the entire state, many people know they are on the edge of losing their house.
Do not let your hard earned equity or credit score slip away by allowing a foreclosure to damage your financial reputation.
WE CAN HELP, BUT ONLY IF YOU CONTACT US. Please review this article to learn more about the foreclosure process in Roanoke, VA.
What is foreclosure anyway?
Foreclosure is the legal process that lenders use to take back property securing a loan, generally after the borrower stops making payments.
Foreclosure can be very intimidating. But just know that it’s not the end of the world.
When you know how foreclosure in Virginia works… it arms you with the knowledge to make sure you navigate it well and come out the other end as well as possible.
The Basic Stages of A Foreclosure
There’s a few stages that are important to any foreclosure process.
Foreclosure works differently in different states around the country.
In Virginia most foreclosures are nonjudicial, which means the bank needs to do very little to foreclose. The sale of the property typically happens outside of court and a third-party (the trustee) manages the process.
Connect with us by calling 540-296-2607 or through our contact page to have us walk you through the specific foreclosure process here locally in Roanoke.
Typically foreclosures doesn’t go to court until 3-6 months of missed payments have elapsed. Usually (but not always), a lender will send out many notices that you are in arrears – overdue or behind in your payment.
Under Power of Sale (or Non Judicial Foreclosure):
- The mortgage lender serves you with papers demanding payment, and the courts are not required – although the process may be subject to judicial review. During this time you are in the “preforeclosure” process. If you are in this stage now we can still help you sell your house before the bank takes your equity or you further damage your credit.
- After the established waiting period has elapsed, a deed of trust is drawn up and control of your property is transferred to a trustee.
- The trustee can then sell your property for the lender at a public auction (notice must be given).
Anyone who has an interest in the property must be notified during either type of foreclosure.
For example, any contractors or banks with liens against a foreclosed property are entitled to collect from the proceedings of an auction.
What Happens After A Foreclosure Auction?
After a foreclosure is complete, the mortgage is paid off with the sale proceeds.
Sometimes, if the sale of the property at auction isn’t enough to pay off the mortgage, a deficiency judgment can be issued against the borrower.
A deficiency judgement is where the bank gets a judgement against you, the borrower, for the remaining funds owed to the bank on the loan amount after the foreclosure sale.
Here’s a great resource that lists the state by state deficiency judgement laws, since every state is different.
Generally, it’s best to avoid a foreclosure auction. Instead, call up the bank, or work with a reputable real estate firm like us at JPHomeBuyers to help you negotiate discounts off the amount owed to avoid having to carry out a foreclosure.
Experienced investors can help you by negotiating directly with banks to lower the amount you owe in a sale – or even eliminate it, even if your home is worth less than you owe.
If you need to sell a property near Roanoke, we can help you.
We buy house in [market-city] Virginia like yours from people who need to sell fast.
Give us a call anytime 540-296-2607 or
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Other Foreclosure Resources For Roanoke Virginia Home Owners: