What is foreclosure?

Foreclosure is a legal process that occurs when a borrower defaults on a mortgage loan and the lender seeks to recover its loan balance by repossessing or selling the home. In Virginia, the foreclosure process begins when the lender files a complaint with the court. The borrower then has a certain period of time to respond to the complaint. If the borrower does not respond within the allotted time frame, the court may order a foreclosure sale, in which the lender can sell the property to the highest bidder to recover the loan balance. If the sale does not cover the loan balance, the borrower may still be liable for the remaining amount. In some cases, the lender may simply take possession of the property without a foreclosure sale. In either case, the homeowner loses the property and any equity they had in it. Foreclosure can have serious negative consequences for both the borrower and the lender, so it is important to reach out for assistance if you are facing foreclosure.

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What is foreclosure?

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