Virginia Foreclosure Laws and Procedures

Before the nationwide foreclosure crisis, both federal and state laws on mortgage servicing and foreclosure procedures were minimal and often favored lenders. Today, however, Virginia foreclosure laws and federal laws provide significantly more protection for homeowners facing foreclosure. Mortgage servicers are now legally required to offer loss mitigation options, document each step in the foreclosure process, and carefully follow legal procedures in Virginia.

In most cases, when a borrower in Virginia takes out a loan to purchase a home, they sign both a promissory note and a deed of trust, which is a document similar to a mortgage. These legal instruments not only secure the loan but also provide homeowners in Virginia with important contractual rights in the event of a home loan default.

If you're behind on your mortgage payments, don't be caught off guard. Understanding your rights during foreclosure in Virginia can make a big difference. From your first missed payment to the final foreclosure sale, knowing how the Virginia foreclosure process works can help you protect your home and explore available options.

What Are Your Legal Rights During the Virginia Foreclosure Process?

In a Virginia foreclosure, you'll most likely get the right to:

• a preforeclosure breach letter
• apply for loss mitigation
• receive notice of the foreclosure sale
• get current on the loan and stop the foreclosure sale
• receive special protections if you're in the military
• pay off the loan to prevent a sale
• file for bankruptcy, and
• get any excess money after a foreclosure sale.

Once you understand the Virginia foreclosure process and your rights, you can make the most of your situation and, hopefully, work out a way to save your home or at least get through the process with as little anxiety as possible.

What Is Preforeclosure?

The period after you fall behind in payments, but before a foreclosure officially starts, is generally called the "preforeclosure" stage. (Sometimes, people refer to the period before a foreclosure sale happens as "preforeclosure," too.)

During the preforeclosure period, the servicer can charge you various fees. Also, in most cases, federal law requires the servicer to let you know how to avoid foreclosure, and most mortgage contracts require the servicer to send you a breach letter.

When Can a Lender Start Foreclosure in Virginia?

Under federal law, the servicer usually can't officially begin a foreclosure until you're more than 120 days past due on payments, subject to a few exceptions. (12 C.F.R. § 1024.41 (2025).) This 120-day period provides most homeowners with enough time to apply for loss mitigation application with their servicer.

What Is the Foreclosure Process in Virginia?

If you default on your mortgage payments in Virginia, the lender may foreclose using a judicial or nonjudicial method.

How Judicial Foreclosures Work

A judicial foreclosure begins when the lender files a lawsuit asking a court for an order allowing a foreclosure sale. If you don't respond with a written answer, the lender will automatically win the case.

But if you choose to defend the foreclosure lawsuit, the court will review the evidence and determine the winner. If the lender wins, the judge will enter a judgment and order your home sold at auction.

How Nonjudicial Foreclosures Work

If the lender chooses a nonjudicial foreclosure, it must complete the out-of-court procedures described in the state statutes. After completing the required steps, the lender can sell the home at a foreclosure sale.

Most lenders opt to use the nonjudicial process because it's quicker and cheaper than litigating the matter in court.

Most Common Foreclosure Method in Virginia: Nonjudicial Foreclosure

Again, most residential foreclosures in Virginia are nonjudicial. Here's how the process works.

Virginia Foreclosure Notice

The foreclosing lender must serve you a notice of sale, usually by mail, no less than 60 days (previously, state law required only 14 days) before the sale if the home is owner-occupied and must include information about legal aid and how to contact a HUD-approved housing counselor. (Va. Code § 55.1-321 (2025).)

In the case of a deed of trust conveying owner-occupied residential real estate, the trustee can't sell the property at a foreclosure sale without receiving an affidavit from the loan servicer, which confirms the notice was sent to the owner, with a copy of such notice attached to the affidavit. (Va. Code § 55.1-320 (2025).)

Foreclosure Sale Publication Requirements

Notice must also be published in a local newspaper of general circulation as provided in the loan agreement, but not less than once per week for two weeks or three days if published on consecutive days. If the loan agreement doesn't provide publishing requirements, the notice must be published once per week for four weeks or on five consecutive days. (Va. Code § 55.1-322 (2025).)

Foreclosure Sale Procedures in Virginia

The foreclosure sale may be held eight days after the first publication and no more than 30 days after the last publication. (Va. Code § 55.1-322 (2025).) At the sale, the lender usually makes a credit bid. The lender can bid up to the total amount owed, including fees and costs, or it may bid less.

In some states, including Virginia, when the lender is the high bidder at the sale but bids less than the total debt, it can get a deficiency judgment against the borrower. If the lender is the highest bidder, the property becomes what's called "real estate owned" (REO).

But if a bidder, say a third party, is the highest bidder and offers more than you owe, and the sale results in excess proceeds—that is, money over and above what's needed to pay off all the liens on your property—you're entitled to that surplus money.

Foreclosure Alternatives and Relief Options for Virginia Homeowners

A few potential ways to stop a foreclosure and keep your home include reinstating the loan, redeeming the property before the sale, or filing for bankruptcy. Working out a loss mitigation option, like a loan modification, will also stop a foreclosure.

Or you might be able to work out a short sale or deed in lieu of foreclosure and avoid foreclosure. But you'll have to give up your home with a short sale or deed in lieu of foreclosure transaction.

How to Reinstate Your Mortgage Before Foreclosure in Virginia

Virginia law doesn't provide you with the right to reinstate the loan before the sale. But the deed of trust you signed when taking out the loan probably gives you time to complete a reinstatement. Check the paperwork you signed when you got the loan to find out if you get a reinstatement right. You can also call your loan servicer and ask if the lender will let you reinstate.

Is There a Right of Redemption After Foreclosure in Virginia?

One way to stop a foreclosure is by "redeeming" the property. To redeem, you have to pay off the full amount of the loan before the foreclosure sale.

Some states also provide foreclosed borrowers with a redemption period after the foreclosure sale, during which they can buy back the home. Virginia law, however, doesn't provide a post-sale redemption period after a nonjudicial foreclosure.

Filing for Bankruptcy

If you're facing a foreclosure, filing for bankruptcy might help. In fact, if a foreclosure sale is scheduled to occur in the next day or so, the best way to stop the sale immediately is by filing for bankruptcy.

Once you file for bankruptcy, something called an "automatic stay" goes into effect. The stay functions as an injunction, which prohibits the lender from foreclosing on your home or otherwise trying to collect its debt, at least temporarily.

In many cases, filing for Chapter 7 bankruptcy can delay the foreclosure by a matter of months. But if you're behind in payments, you'll probably have to give up the property. If you want to save your home, filing for Chapter 13 bankruptcy can provide a way to catch up on payments. To find out about the options available to you, speak with a local bankruptcy attorney.

Foreclosure Protections and Military Servicemembers

The Servicemembers Civil Relief Act provides legal protections to military personnel who are in danger of foreclosure.

What Happens After a Foreclosure Sale in Virginia?

If your home gets foreclosed, you'll have to leave. The new owner doesn't have to give the former owner notice before filing an eviction lawsuit, bu the foreclosed owner might receive a five-day notice to vacate.

In addition, you might face a deficiency judgment after a foreclosure sale in Virginia.

Deficiency Judgments in Virginia Foreclosures

In a foreclosure, the borrower's total mortgage debt sometimes exceeds the foreclosure sale price. The difference between the total debt and the sale price is called a "deficiency." For example, say the total debt owed is $600,000, but the home sells for $550,000 at the foreclosure sale. The deficiency is $50,000.

In some states, the lender can seek a personal judgment against the debtor to recover the deficiency. Generally, once the lender gets a deficiency judgment, the lender may collect this amount—in our example, $50,000—from the borrower.

In Virginia, the lender may file a lawsuit after a nonjudicial foreclosure to get a deficiency judgment against you. (Va. Code § 8.01-241 (2025).)

Where to Get Help With Virginia Foreclosure Issues

For more information on federal mortgage servicing laws, as well as foreclosure relief options, go to the Consumer Financial Protection Bureau (CFPB) website. You can also learn more by reading Nolo's foreclosure articles:

• Get tips on what to do—and what not to do—if you're facing a foreclosure.
• Learn about last-minute strategies to stop foreclosure.
• Find out if foreclosures are on the rise.

If you have questions about Virginia's foreclosure process or want to learn about potential defenses to a foreclosure and possibly fight the foreclosure in court, consider talking to a foreclosure attorney. If you can't afford to hire a lawyer, VALegalAid.org provides foreclosure prevention information and, in some cases, legal assistance to homeowners facing foreclosure.

It's also a good idea to talk to a HUD-approved housing counselor to learn about different loss mitigation options.