Understand Roanoke, VA, Foreclosure Laws
This month, Wilson C. Pasley, PLC, Attorney at Law, will explain foreclosures at a glance. Most Virginia foreclosures come as non-judicial. The commonwealth doesn’t require a lender to complete an out-of-court foreclosure. Read along as we provide clients in and around Roanoke, VA, with foreclosures at a glance.
Know When a Foreclosure Starts in Roanoke, VA
Federal law requires Roanoke, VA, residents to wait until the loan is over 120 days delinquent before starting a foreclosure. However, if individuals violate a due on sale clause, or if the servicer joins in, the foreclosure can begin sooner.
Learn How the Foreclosure Process works
Lenders must serve a sale notice no less than 60 days before the sale if the home is owner-occupied. The letter must include information about legal and contacting a HUD-approved housing counselor. Local newspapers must also publish the notice as provided in the loan agreement. If the deal doesn’t provide publishing requirements, lenders must post the notice once per week for four weeks.
You Can Stop a Foreclosure in Roanoke, VA
There are a few potential ways to stop a foreclosure in Roanoke, VA, including:
Reinstating the Loan
The trust deed you sign when taking out the loan gives you time to reinstate the loan. If you get a reinstatement, check the paperwork that you signed when you got the loan. Your loan servicer can ask if the lender will reinstate it.
Redeeming the Property Before the Sale
Paying off the total amount of the loan before the foreclosure sale is redeeming the property. Some states provide foreclosed borrowers with a redemption period where they can repurchase the home.
Filing for Bankruptcy
Sometimes, filing for bankruptcy is the best way to stop the sale. An “automatic stay” goes into effect upon filing for bankruptcy, which prohibits the lender from foreclosing.
If you can work out a loss mitigation option, that is another way to stop a foreclosure.
For more information about foreclosures at a glance, call Wilson C. Pasley, PLC, Attorney at Law, at (540) 266-1545. Like us on Facebook for the latest company happenings Our dedicated lawyers have explained to clients in and around Roanoke, VA, about foreclosures at a glance.