Foreclosure is a nightmare for any Virginia family, leading to severe effects such as losing your home, damaged credit, and potential lingering debt. Today, we’ll explore the foreclosure effects in Virginia and what local sellers need to know, including ways to mitigate these impacts.
Table Of Contents
- Understanding the Foreclosure Process: How It Works
- Foreclosure Effects in Virginia to Sellers
- How You Can Ease The Effects Of Foreclosure In Virginia
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When Can Foreclosure Start in Virginia?
Under federal law, a servicer typically cannot initiate foreclosure until you’re over 120 days late on payments, with a few exceptions . This 120-day window generally gives homeowners sufficient time to submit a loss mitigation application to their servicer.
Understanding the Foreclosure Process: How It Works
In Virginia, if you default on your mortgage payments, the lender may foreclose through either a judicial or nonjudicial process.
- Missed Mortgage Payments
- Notice of Default
- Preforeclosure
- Notice of Sale
- Eviction
Most residential foreclosures in Virginia are nonjudicial. Here’s how the process unfolds.
The foreclosing lender must send you a notice of sale, typically by mail, at least 60 days before the sale if the home is owner-occupied (up from the previous 14-day requirement). The notice must also include details about legal aid and how to contact a HUD-approved housing counselor (Va. Code Ann. § 55.1-321).
Foreclosure Effects in Virginia on Sellers
- Loss of your home – Pretty self-explanatory here. The major end result of a foreclosure in Virginia is of course the loss of the home to the bank.
- Decrease in Your Credit Rating – The foreclosure will lower your credit rating. How much? It depends on how high your current credit score is… but the higher your current credit score… the more your score will drop after a foreclosure. If you have a credit score of 680 or higher… you may see a drop of 100+ points.
- Depression and Stress – Your mental health is at stake because of the high pressure situation. Going through a foreclosure is emotionally exhausting and frustrating to say the least.
- House Values In Your Community – Another one of the big foreclosure effects in Virginia is that they tend to lower the overall value of the houses in your neighborhood… especially if there are multiple foreclosures in the immediate area.
How You Can Ease The Effects Of Foreclosure In Virginia
For the well being of you and your family, you need to mitigate the effects of foreclosure as much as you can. The process can be frustrating and time consuming, but there are people who can help you navigate your different options in the process.
First…
- Call your bank and work with them: Most banks are very willing and ready to work with you… if you can show that with their help you can get back on track and save your house. Or, if you just want out of the house but you owe more on the house than it’s worth… see if the bank has any programs to lower the mortgage burden so you can get out from underneath it without it going through an expensive foreclosure.
- Talk with a local real estate expert, like Northern Virginia House Buyers: We know the local real estate market well and are very experienced in the foreclosure process here in Virginia. Give us a call at 571-470-7154 and we can guide you toward the resources that can possibly help you.
- Sell your house: If you’d rather find a way to sell your house and avoid the foreclosure all together, great! We buy local Virginia houses for cash… and would love to look at your situation and make you a fair all-cash offer on your house. Just call us at 571-470-7154 or shoot us your details through this website.
With the above knowledge on foreclosure effects in Virginia – what sellers need to know, you can guard yourself by calling Northern Virginia House Buyers at 571-470-7154 and we shall assist you in the shortest time possible to sell your house. However, to fast track the process, kindly fill out our website contact form to give us more information about you. We’d love to connect with you and help you find the best solution!