Virginia allows both judicial and non-judicial foreclosure processes. In a judicial foreclosure, the lender must file a lawsuit and obtain a court order to foreclose, then the property is auctioned. The borrower has 240 days after the sale to redeem the property. In a non-judicial foreclosure, if a power of sale clause exists, the lender can sell the property following notice and advertising requirements. The borrower can stop the sale before it occurs by paying all amounts owed. At auction, the property is sold to the highest bidder. Deficiency judgments are allowed in Virginia without limits on the lender.

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Virginia Foreclosure Law Summary
WHAT IS A SHORT SALE
Quick Facts
WHY USE SHORT SALE US
- Judicial Foreclosure Available: Yes
SUCCESS STORIES
- Non-Judicial Foreclosure Available: Yes
WHO QUALIFIES FOR A SHORT SALE
- Primary Security Instruments: Deed of Trust, Mortgage
FAQs
- Timeline: Typically 60 days
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- Right of Redemption: Varies
VALUE YOUR HOME
- Deficiency Judgments Allowed: Yes
STATE FORCLOSURE LAWS
In Virginia, lenders may foreclose on deeds of trusts or mortgages in default
CONTACT US using either a judicial or non-judicial foreclosure process.
HIRE US Judicial Foreclosure
The judicial process of foreclosure, which involves filing a lawsuit to obtain a
court order to foreclose, is used when no power of sale is present in the
mortgage or deed of trust. Generally, after the court declares a foreclosure,
the property will be auctioned off to the highest bidder.
The borrower has two hundred forty (240) days from the date of the sale to
redeem the property by paying the amount for which the property was sold,
plus six (6) percent interest.
Non-Judicial Foreclosure
The non-judicial process of foreclosure is used when a power of sale clause
exists in a mortgage or deed of trust. A "power of sale" clause is the clause in
a deed of trust or mortgage, in which the borrower pre-authorizes the sale of
property to pay off the balance on a loan in the event of the their default. In
deeds of trust or mortgages where a power of sale exists, the power given to
the lender to sell the property may be executed by the lender or their
representative, typically referred to as the trustee. Regulations for this type of
foreclosure process are outlined below in the "Power of Sale Foreclosure
Guidelines".
Power of Sale Foreclosure Guidelines
If the deed of trust or mortgage contains a power of sale clause and specifies
the time, place and terms of sale, then the specified procedure must be
followed. However, additional requirements must be met, as outlined below in
section one (1).
Even when the deed of trust makes allowances for advertising the foreclosure
sale, Virginia Statutes require ads to be published no less than once a day for

2. three days, which may be consecutive days. These requirements are in
addition to the advertising terms stipulated in the deed of trust. If the deed of
trust does not provide for advertising, then the ad shall be run once a week for
four successive weeks. However, near a city, an ad on five different days,
which may be consecutive, will be sufficient.
A copy of the advertisement or a notice with the same information must be
mailed to the borrower at least 14 days before the foreclosure sale.
The foreclosure sale ad must include anything required by the deed of trust
and may include a legal description of the property, a street address and a tax
map identification or general information about the property's location. The
notice must include the time, place and terms of sale. It must give the name of
the trustee and the address and phone number of a person who will be able to
respond to inquiries about the foreclosure sale.
Any time before the sale, the borrower may cure the default and stop the sale
by paying the lien debt, costs and reasonable attorney's fees.
The sale, which may be held no earlier than eight (8) days after the first ad is
published and no more than thirty (30) days after the last advertisement is
published, is to be made at auction to the highest bidder. Any person other
than the trustee may bid at the foreclosure sale, including a person who has
submitted a written one-price bid. Written one-price bids may be made and
shall be received by the trustee for entry by announcement of the trustee at
the sale. Any bidder in attendance may inspect written bids. Additionally, the
trustee may require bidders to place a cash deposit of up to ten (10) percent
of the sale price, unless the dead of trust specifies a higher or lower amount.
In the event of postponement of sale, which may be done at the discretion of
the trustee, advertisement of such postponed sale shall be in the same
manner as the original advertisement of sale.
Once the sale is complete, the proceeds will go to: 1) the expenses of
executing the trust; 2) to discharge all taxes, levies, and assessments, with
costs and interest if they have priority over the lien of the deed of trust; 3) to
discharge in the order of their priority, if any, the remaining debts and
obligations secured by the deed, and any liens of record inferior to the deed of
trust under which sale is made; 4) any remaining proceeds go to the borrower.
Lenders may obtain deficiency judgments, without limits, in Virginia.
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