What is the foreclosure process for a reverse mortgage?

In Virginia, the foreclosure process for a reverse mortgage begins when the borrower defaults on the loan. This can be a result of the borrower missing several payments, surpassing the loan limit, or moving out of the home. Once the lender believes that the borrower has defaulted, they will initiate the foreclosure process. The first step in the foreclosure process is for the lender to formally notify the borrower of the default. The notice will outline that the borrower is in violation of the terms of the loan agreement and give them a set number of days to remedy the default or the foreclosure process will begin. If the borrower is unable to rectify the situation within the specified time frame, the lender will then move forward with a foreclosure action. This action may require the lender to file a notice of foreclosure in the Virginia circuit court. The notice of foreclosure must be publicly recorded, and the borrower must be notified. When the foreclosure process is complete, the lender will repossess the property. The lender will then put the property up for sale to recover the outstanding loan balance. If any amount is still owed after the sale of the property, the lender may pursue a deficiency judgment against the borrower for the remaining balance.

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What is the foreclosure process for a reverse mortgage?

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