The difference between the sale price and the total debt is called a “deficiency balance.” Many states, including Virginia, allow the lender to get a personal judgment , called a “deficiency judgment,” for this amount against the borrower.
Which states allow deficiency judgments?
What States Allow Deficiency Judgments? Most states allow deficiency judgments. Only Alaska , California, Minnesota, Montana, Oregon and Washington forbid deficiency judgments in most cases.
Is Virginia an anti deficiency state?
Most foreclosures in Virginia are nonjudicial , which means the lender doesn’t have to go through state court to foreclose.
How long does a deficiency judgments last?
A deficiency judgment will remain on your credit report for 7 years . If you apply for a mortgage, car loan, credit card or other loan, lenders will see this negative judgment until it falls off your report.
Is Virginia a judicial or nonjudicial state?
Virginia is a “title theory” state, meaning that the property title remains in trust until the loan is made in full. In most cases, Virginia residential foreclosures are nonjudicial . This means that the lender doesn’t have to go through state courts to foreclose. However, there are also cases of judicial foreclosures.
What is the redemption period in Virginia?
Generally, after the court declares a foreclosure, the property will be auctioned off to the highest bidder. The borrower has two hundred forty (240) days from the date of the sale to redeem the property by paying the amount for which the property was sold, plus six (6) percent interest.
How long does it take to foreclose on a home in Virginia?
How Long Does the Typical Foreclosure Process Take in Virginia? A property can be foreclosed in Virginia in as little as 60 days if it foreclosed through the non judicial foreclosure process and the borrower does not contest or stall the proceedings.
Do Judgements ever go away?
Money judgments automatically expire (run out) after 10 years . ... If the judgment is not renewed, it will not be enforceable any longer and you will not have to pay any remaining amount of the debt. Once a judgment has been renewed, it cannot be renewed again until 5 years later.
What happens if u dont pay a Judgement?
If the creditor can’t legally access your money or possessions, they might instigate a debtor’s examination, where they can ask you a bunch of questions. If you don’t show up, the court can “find you in civil contempt .” The court interprets your absence as disobeying orders, and you have to pay up or go to jail.
How do you fight a deficiency Judgement?
It may be possible to fight the collection efforts or limit how much collectors can take, but you need a skilled attorney to review your case. Bankruptcy might also be an option for wiping out a deficiency judgment, but there will be side-effects (including potential damage to your credit).
Is Virginia a foreclosure restart state?
Again, most Virginia foreclosures are nonjudicial . Virginia law doesn’t require a lender to do much to complete an out-of-court foreclosure. The minimal steps required include: sending you one notice and publishing a notice of the sale in a newspaper.
Is Virginia a right of redemption state?
Virginia, however, doesn’t have a law providing a post-sale redemption period . So, you won’t be able to redeem the home following a foreclosure.
Which states are judicial states?
Judicial States: Connecticut, Delaware, Florida, Hawaii, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, New Jersey , New Mexico, New York, North Dakota, Ohio, Oklahoma, Pennsylvania, South Carolina, Vermont, and Wisconsin.
Can a bank foreclose if payments are current?
A mortgage loan may be held by one bank initially, then taken over by another. While the homeowner’s records may indicate that they have been paying the mortgage, they may not have been paying to the right bank. ... Regardless, if the current lender is not getting the payments, foreclosure is possible .
Is va a judicial foreclosure state?
Judicial foreclosure is the rare exception in Virginia and Maryland, because each state’s laws allow the less-complicated non-judicial foreclosure under a power of sale. However, judicial foreclosure is available as a remedy in Virginia and Maryland.
Can you get another VA loan if you had a foreclosure?
VA Loans also allow Veterans and active military to bounce back faster after a bankruptcy, foreclosure or short sale. You can be eligible for a VA Loan two years after a Chapter 7 bankruptcy discharge ; one year after filing a Chapter 13 bankruptcy; and two years following a foreclosure.
