Can the lender continue to collect late fees and interest during a foreclosure sale?

In Virginia, the answer to whether a lender can continue to collect late fees and interest during a foreclosure sale is, generally, yes. The General Assembly enacted Virginia Code § 55-59.1 which states that during the period starting on the date the foreclosure proceedings are filed until the date of foreclosure sale, lenders may collect late charges, fees, and interest. This includes any legal fees associated with the foreclosure process. However, any interest not yet paid before the sale must be paid to the trustee conducting the sale. Additionally, any late fees or interest paid to the lender may be subject to a deficiency judgment, where the lender is able to recoup any losses from the sale. Moreover, if the purchaser at the foreclosure sale is not the lender, the lender should stop collecting interest and fees upon completion of the sale. At that point, the lender no longer has a claim to the property, and any owed fees or interest should be handled by the buyer. In summary, a lender in Virginia may collect late fees, interest, and any legal fees associated with the foreclosure process until the date of the foreclosure sale. After the sale, any unpaid interest and fees should be paid to the trustee conducting the sale, or to the buyer if it is not the lender.

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Can the lender continue to collect late fees and interest during a foreclosure sale?

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