What happens after a foreclosure sale?

After a foreclosure sale, the process is still not done. In Virginia, the lender has the right to ask the court for a deficiency judgment. This is a court order that requires the former homeowner to pay the difference between the amount they owed on the mortgage and any proceeds from the foreclosure sale. If the court grants the deficiency judgment, the former homeowner will then be required to pay that amount to the lender. If they do not pay, the lender can then take additional legal steps to collect the amount owed, such as wage garnishment or bank levies. Additionally, the lender may be able to file a lawsuit against the former homeowner to collect the amount due. The former homeowner should be aware that this can result in additional court costs and other fees. Finally, the foreclosure sale can also have tax consequences for the former homeowner, as they may be responsible for any taxes due on the amount of the deficiency judgment. In summary, after a foreclosure sale in Virginia, the lender may be able to file a lawsuit to collect the amount owed and the former homeowner may be liable for any taxes due. The former homeowner should be aware of all potential consequences that can result from a foreclosure sale.

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What happens after a foreclosure sale?

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