Can a lender foreclose on a property with a mortgage lien?

In Virginia, a lender may foreclose on a property with a mortgage lien. A lien is a legal claim that a creditor has against a property; when a borrower defaults on their loan, the lien gives the lender the right to take possession of the property for the purpose of collecting the debt. In a foreclosure, the lender takes ownership of the property, and may then sell it to collect the outstanding loan balance. The foreclosure process in Virginia begins when the lender files a Complaint for Foreclosure with the local Circuit Court of the county in which the property is located. The borrower will then be served with a Notice of Foreclosure, which states the amount of the loan, the nature of the lender’s claim, and the terms of the foreclosure. The borrower can then choose to contest the foreclosure in court or accept a settlement agreement. If there is a mortgage lien on the property, the lender is within their rights to foreclose. Virginia laws protect the creditor’s lien, which allows them to foreclose to satisfy the debt. By filing a Complaint for Foreclosure in court, the lender can take possession of the property and eventually sell it to recover the amount of the loan.

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Can a lender foreclose on a property with a mortgage lien?

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