What happens if I fail to make payments during a foreclosure process?

If you are facing foreclosure in Virginia, it is important to understand what will happen if you fail to make payments during the foreclosure process. If you fail to make payments, the lender or mortgage servicer will file a Notice of Default with the court in order to initiate the foreclosure process. Once the notice has been filed, the lender will be able to set a sale date for the property. If the sale date is set, the borrower will still have the right to catch up on the payments, however, if they do not, the property will be sold via a foreclosure auction. The foreclosure process usually takes several months, and during that time, the lender may be willing to work out a new payment plan with the borrower to try to keep them in the property. This often involves temporarily reducing or suspending payments for a period of time while the borrower catches up. If that is not possible, the lender may be willing to accept a deed in lieu of foreclosure, which would allow the borrower to transfer the property to the lender and avoid foreclosure. If all attempts to resolve the situation fail, and the property is sold at a foreclosure auction, the borrower is responsible for any remaining loan balance. This can be a sizable amount, depending on the value of the property after the sale. Once a foreclosure sale is complete, the borrower is typically evicted from the property and must move out within 30 days. It is important to note that in Virginia, a foreclosure stays on your credit report for up to seven years, making it harder to secure a loan in the future.

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What happens if I fail to make payments during a foreclosure process?

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