What are the laws governing foreclosure?

In Virginia, the laws governing foreclosure are established by the Virginia Foreclosure Act. According to the Act, lenders must send a written notice to the borrower at least sixty days before the foreclosure can take place. This notice must include specific information, such as the borrower’s right to redeem the loan, the amount of time left to redeem the loan, and the date, time, and location of the foreclosure sale. After the notice is issued, the lender must advertise the foreclosure sale in a newspaper of general circulation for twenty-one days. The lender must also mail a notice of the foreclosure to the borrower at least fifteen days before the sale. At the foreclosure sale, the property is sold to the highest bidder and a deed will be issued to the new owner. Any money that results from the sale is divided between the lender and the borrower. The lender will receive any money left over after the creditor is paid in full. Once the foreclosure sale has occurred, the borrower still has a limited time to reclaim the property if they are able to pay back the debt in full or make a settlement agreement with the lender. If the borrower does not reclaim the property or make a settlement, the deed will transfer to the new owner and the borrower will no longer have an interest in the property.

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What are the laws governing foreclosure?

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