What is Foreclosure law?
According to Petersburg Virginia foreclosure law, foreclosure is defined as the action of possessing a mortgaged property when the mortgager fails to keep up the payments of the mortgage. A mortgage lender can take the possession of a property and can sell it when the borrower has defaulted the loan. The money that is recovered from the sale is then used to pay off the loan and the new buyer can take the home without a mortgage. The home becomes collateral for the new buyer.
Types of foreclosure:
The foreclosure can be initiated anytime by the mortgage holder after a default on the mortgage. There are several types of foreclosure present across the world. Two of them are widely used according to the Petersburg Virginia foreclosure law. The two types of foreclosure include foreclosure by the judicial sale and foreclosure by the power of sale. There is no power of sale clause present in the judicial process of foreclosure in the deed of trust or mortgage. The property is auctioned off to the highest bidder after the declaration of the foreclosure by the court. Usually, there are 240 days for the borrower to redeem the property from the date of sale. By paying the amount of property that was sold with six percent interest, the property can be redeemed.
For a non-judicial process of foreclosure, “A power of sale,” is the clause that is present in the deed of mortgage or trust. According to Petersburg Virginia foreclosure laws, the borrower pre-authorizes the sale of the property to pay off the balance on loan. In this clause, the lender or representative is referred to as trustee. They execute the power to the lender for the selling of property. The regulations of foreclosure include:
- It is mandatory to follow the procedures that are specified if the power of sale in the deed of trust is mentioned with the time, place, and terms of sale.
- The foreclosure sale ad must include the complete description of the property with its legal description, street address, tax map identification, etc.
- As mentioned in the Petersburg Virginia foreclosure laws, the sale should not be started earlier than eight days after the publishing of first ad and not more than 30 days after the last date is published. The property should be auctioned off to the highest bidder.
- All the taxes, levies, and assessments with costs and interests are dismissed when the sale is completed.
Foreclosure can be stopped through several ways. The defendant has the right to have the assistance of an experienced and specialized lawyer because the right to hire a lawyer is regarded as the constituent of the right to a fair trial. The defense lawyers of Petersburg Virginia foreclosure laws help their client to plan a defense process to stop the foreclosure. Several firms also recruit such lawyers to give easy access to the users. They look at the lender’s calculation of mortgage arrears, costs and fees are correctly entered or not. They give the best knowledge and advice to their clients regarding the case. They discuss the pros and cons that are associated with the case.