Judicial And Non-Judicial Foreclosure in Fairfax, VA

Foreclosure in Fairfax, VA is not uncommon. The rate for the state is lower than the national average at 1 in every 1,875. The rate of foreclosure in Fairfax, VA is even lower than both the state and national average at 1 out of every 2,716. AS for types of bankruptcy, in Virginia, both Judicial and non-judicial forms of foreclosure are available.

What is Judicial Foreclosure?

Judicial foreclosure is the direct involvement of the judicial process in obtaining an order of foreclosure. The means implemented is a lawsuit filed by the mortgage holder, lender or other invested parties. A judicial court mandated order of foreclosure is the result of the terms of the mortgage or deed of trust. In this specific case, neither contract features a power of sale.

In a judicial foreclosure in Fairfax, VA, if the court declares in favor of a foreclosure, the following applies:

  • The property is put up to auction where it will be sold to the highest bidder
  • Although the property now has a new owner, the previous one has a term of two hundred forty (240) days from the sale date to redeem his or her property. He or she can only accomplish this by paying the new owner the price paid at auction in addition to an interest of six (6) percent.

The situation differs for those who are faced with a non-judicial foreclosure.

What is Non-Judicial Foreclosure?

This form of foreclosure is common where the deed of trust or mortgage does contain a specific power of sale clause. This is a valid type of foreclosure in Fairfax, VA. The presence of a power for sale clause grants the holder or banker of the mortgage to obtain the monies owed by selling off the property in question. The presence of this clause in a mortgage or deed of trust is a preauthorization granted by the borrower to permit the lender to follow this course of action if necessary. In other words, the lender has the right to execute a power of sale as soon as the borrower falls into default.

The lender may execute this power on his or her own or may rely on a representative. The term commonly applied to the agent of the lender is trustee. The agent, the lender and the borrower must all follow set procedures throughout each step of the process. This is one reason why it is essential when someone is faced with a foreclosure in Fairfax, VA that he or she contacts a lawyer. This ensures the power of sale holder follows the Power of Sale Foreclosure Guidelines of Virginia. This includes:

  • Posting of the notice of foreclosure
  • Timing of the sale of the residence – no earlier than 8 days after the running of the first power of sale ad
  • Ability of the borrower to take care of the default and stop the power of sale

The only way to make sure the rights of a borrower are met when a foreclosure in Fairfax, VA occurs is to a hire a foreclosure lawyer. This is true whether the method is judicial or non-judicial.

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