How long does the Virginia foreclosure process take?
Since Virginia is a non-judicial foreclosure state, the timeline will move faster compared to other states. Federal law requires lenders to wait until a borrower is 120 days delinquent (or in the pre-foreclosure stage) before the process officially starts. Once the Notice of Sale is mailed to the borrower, the foreclosure auction can happen quickly. Specifically, it can be as little as a few weeks depending on the property type and notice requirements. The most effective way to stop the auction and protect your credit is selling the property quickly to a cash buyer before the auction date. Let Integrity Cash Home Buyers handle the sale so you can be able to save your financial standing and also start fresh.
I was in a Virginia Beach home on a Monday after lunch. A recent client (who we’ll call Mike) called me about selling his house. I could hear a bit of slight desperation in his voice. “I just got this Notice of Sale thing in the mail yesterday,” he told me. “They’re going to auction off my house. I can’t make the overdue payments in time because I’ve been laid off from my job and it’s been hard to keep up since then.” When I arrived, he would present me with a pile of papers regarding the notices of missed payments followed by that dreaded Notice of Sale letter.
“So how much time do I really have,” Mike would ask me. I looked at the auction date. Two weeks out. He had enough time to sell, but I had to break something else to him. “OK, so here’s the thing Mike. You do have enough time to stop the auction,” I began. “But you’re going to need to sell the house. You’re looking at someone who is willing to buy it from you.” Mike nodded slowly as if he was telling me to go on.
“The bad news is you’re not going to do it the old fashioned way. You don’t have enough time for that. But if you let Integrity Cash Home Buyers buy it, I’ll give you a cash offer and handle the leftover balance. You’ll have a chance to start fresh and your credit stays intact.” Mike began to display a look on his face that read relief. And just like that, the deal was done.
If you’re facing foreclosure or a possible auction of your property, Integrity Cash Home Buyers is here to assist you. My team and I can give you a cash offer in Virginia Beach so you get a clean exit and never have to worry about the foreclosure of the property in question.
Virginia Foreclosure Laws: Judicial vs Non-Judicial
The first thing I should bring up are the Virginia foreclosure laws. I don’t know if I mentioned this earlier, but in case I didn’t, let me mention one crucial detail. Virginia is a non-judicial state. So what that means is that when you bought the house, you signed a “Deed of Trust”. What’s inside that document is something known as a power of sale clause. This gives the lender the legal right to foreclose the property without having to go through a judge in the event of a default. In plain English, you won’t be sued by a lender like in many states.
In other words, you get notices. Before the auction, it gets advertised in the newspaper to ensure public knowledge. Then the auction process happens. Before you know it, the property is sold to someone else and you need to leave as soon as possible. You can avoid foreclosure by contacting my team and I at Integrity Home Buyers so we can perform a property discovery and give you a reasonable cash offer so the auction doesn’t ever happen.
Virginia Foreclosure Process Step by Step
OK, I want to get to the point about the Virginia foreclosure process step-by-step. At this point, you may have missed some steps in the process. So here’s a look at what happens from start to finish:
Phase 1: Missed Payments and Late Fees (Days 1-30)
It’s the quiet part of the process. If you miss one payment, you have 15 days before a late fee is added on. After the first month, you also have phone calls and collection letters. One homeowner in Chesapeake told me that he got one of those notices and said “ah no big deal, I’ll take care of it”. He said it was the worst decision he made in his life and it had been three months before he got a hold of me. I could see the auction notice and he shook his head in disbelief. How quickly it escalates can be the most shocking to most.
Phase 2: Pre-Foreclosure in VA and the Breach Letter (Days 30-120)
At this point, this is where the pre-foreclosure in VA period heats up. As I mentioned, federal mortgage laws prevent lenders from making the first official foreclosure notice until the loan itself is 120 days delinquent. I will say this: you do have time for now. But it isn’t enough to put it off. I’ve read the notice letters like this that say pay the overdue balance and the fee on top of it to ensure the loan stays current. Otherwise, foreclosure begins. I even had one client say “I won’t be able to make such payments in time” before he decided to sell the house. Yet, we buy houses in Chesapeake quickly even if you’re in the early stages of this process. So if you know for sure you won’t be able to make the payments as the foreclosure process progresses, get in contact with us as soon as possible.
I do want to mention that the breach letters I’ve seen contain details such as missed payments, late fees, attorney fees, total reinstatement amount, and a deadline to cure default. These pile up into thousands of dollars and counting.
Phase 3: The Notice of Sale Virginia (Day 120+)
Things get serious at this stage. When the lender moves forward, the trustee issues what is known as a Notice of Sale. Virginia law requires lenders at least 60 days’ notice for owner-occupied residential properties before a sale. Back then it was 14 days. Still, it matters to know about these details. Plus, I’ve seen many articles related to the topic that are outdated.
With this in mind, the lender publishes the sale in a local newspaper since it requires public notice. That’s when the foreclosure becomes more of a scheduled event than a threat. A Notice of Sale typically includes the following:
- Sale date
- Sale time
- Sale location
- Trustee information
- Legal property description
I caution you that this is the last meaningful window to stop it. Act fast or regret not doing so in the future.
Phase 4: The Foreclosure Auction
Auction day arrives. Although Virginia is a non-judicial state where there is no foreclosure case and doesn’t see a courtroom or a judge, the court still plays a role in the process in part. Auctions happen on the steps of the local courthouse. Investors and buyers put their bids in and the highest bid gets the property. Once the gavel falls, the ownership is then transferred. Your rights end right then and there.
I want to be very blunt with you here. Virginia does not offer a post-sale redemption. Meaning once the gavel falls, that’s it. No “buy it back” later. You don’t have enough time to act other than leave the property as soon as possible.
How to Stop Foreclosure in Virginia
It is possible to stop foreclosure in Virginia. Yet, time is what matters. So it may be a good idea to consider certain options. The typical ones are:
- Loan modification where you can ask the lender to modify your payments. You can keep the home and make lower payments. But there’s a lot of paperwork, a slow approval time, and it’s never a guarantee that you get approved.
- Forbearance is a temporary pause. It’s a short-term relief but the payments come due later on.
- Bankruptcy does create that automatic stay. It pauses foreclosure temporarily. However, the debt isn’t erased. And bankruptcy follows you for at least 7 years.
The Best Option: Sell House Fast to Avoid Foreclosure VA
The cleanest exit is to sell to a cash home buyer in the local area. Integrity Home Buyers know that the cost of selling your home the traditional way can be more than what you can afford with the overdue loan. Not to mention, you don’t have time to go through the traditional process either since there is not enough time left on the clock.
You can sell your house in Hampton in as little as 7 days. We perform a property discovery, provide you with a cash offer, and you choose the closing date. Best of all, you avoid foreclosure and the auction process that may otherwise cause damage to your credit and equity in the process.
FAQ: Navigating the Foreclosure Process in VA
Can I sell my house if a foreclosure auction date is already set?
Yes. Until the auction begins, the house is still yours. You can still be able to sell and cash buyers are typically the best approach.
Do I get to keep any money if the bank forecloses?
You’ll have very little money on hand if the auction prices only satisfy the debt and fees. If you sell before the auction, you’ll keep more money.
Conclusion: Don’t Let The Bank Take Your Home
I know how overwhelming foreclosure can feel. Yet, you don’t have to wait any longer. Nor should you ever risk your credit by delaying the inevitable. Sell your house to my team and I at Integrity Cash Home Buyers before the auction and we’ll make sure you get a clean exit and your credit is still intact. Schedule a property discovery with us as soon as possible and we’ll be happy to help.
