If you are behind on your mortgage and the letters are piling up, you are probably scared. That is normal. The good news is that in Virginia, you usually have more time and more options than you think. The key is to act now, not the week before the sale.
Here is how foreclosure works in Virginia, how long it takes, and the real ways to stop it.
We are not attorneys. If a sale date is already set, talk to a Virginia real estate or bankruptcy attorney right away. Free legal aid may be available too.
How Foreclosure Works in Virginia
Most Virginia foreclosures do not go through a court. Your loan is tied to a “deed of trust,” which lets a trustee sell the house at auction if you default. Here is the usual timeline:
- You miss payments. Late fees start, and your credit takes a hit after 30 days.
- Your lender sends a breach or default letter. It tells you how much you owe and how long you have to catch up.
- The 120-day wait. Federal rules generally keep your servicer from starting foreclosure until you are more than 120 days behind.
- Notice of sale. For a home you live in, Virginia requires the trustee to mail you notice at least 60 days before the sale. It has to include information on free housing counseling and legal aid.
- Newspaper ads. The sale is advertised in a local paper in the weeks before the auction.
- The foreclosure sale. The house is auctioned, often on the courthouse steps. Once the sale happens, Virginia gives you no right to buy the house back.
From the first missed payment to the sale, it is often around six to eight months. That sounds like a lot of time, but most of your options get harder the closer you get to the sale date.
7 Ways to Stop Foreclosure in Virginia
1. Catch up on what you owe (reinstatement)
If you can pay the missed payments plus fees, ask your servicer for a reinstatement quote. Virginia law does not guarantee this right, but many deeds of trust and servicers allow it. Get the amount and the deadline in writing.
2. Ask for a repayment plan or forbearance
If you cannot pay it all at once, a repayment plan spreads the missed amount over several months. Forbearance can pause or lower payments for a while if you had a short-term setback, like a job loss. Here is more on getting mortgage help when you lose your job.
3. Apply for a loan modification
A modification changes your loan terms to lower your payment for good. Send a complete application as early as you can. Federal rules give you extra protection when a complete application is sent in well before the sale date.
4. Talk to a free housing counselor
HUD-approved housing counselors are free. They can help with your application and talk to your lender with you. Call HUD at (800) 569-4287 to find one. Never pay anyone an upfront fee to “save” your home.
5. Sell the house before the sale date
If you have equity, selling is often the best way out. Your mortgage, including what you are behind, gets paid off at closing, and you keep whatever is left. A foreclosure wipes out that equity and stays on your credit for years.
Timing matters. A regular sale with a buyer’s loan takes 30 to 45 days to close. A cash sale can close in as little as 10 to 14 days. Here is how the closing process works.
6. Short sale or deed in lieu
If you owe more than the house is worth, your lender may agree to a short sale, where they accept less than the full payoff. A deed in lieu means you hand the house back to the lender instead of going through foreclosure. Both are usually easier on your credit than a foreclosure. Ask whether the lender will forgive any leftover balance.
7. Bankruptcy
Filing for bankruptcy puts an automatic stop on the foreclosure, at least for a while. Chapter 13 can let you catch up over three to five years and keep the house. Chapter 7 usually only delays things. Talk to a bankruptcy attorney about which one fits. Here is more on selling your home during Chapter 7.
If You Are in the Military
Hampton Roads has a huge military community, so this matters here. The Servicemembers Civil Relief Act gives extra foreclosure protection to many active-duty service members, especially on loans taken out before active duty. Talk to your base legal office (JAG) as soon as you fall behind. It is free.
What Happens If the Foreclosure Goes Through?
- You lose the house and your equity. If the sale brings in more than you owe, you are owed the extra, but auctions often sell low.
- You may still owe money. Virginia lets lenders sue for the difference if the sale does not cover the loan. This is called a deficiency.
- You will have to move. The new owner can file to evict you soon after the sale.
- Your credit takes a big hit. A foreclosure stays on your credit report for seven years and makes it harder to buy or rent.
How We Can Help With Stopping Foreclosure in Virginia
If you can work it out with your lender and keep the house, that is usually the best outcome, and we will tell you so. If you have equity and enough time, listing it with an agent will usually get you more than we can pay.
If the sale date is close, the house needs work, or you just want it done, we can help you sell your house before foreclosure. Here is exactly how we figure out an offer. We work out what the house will be worth once it is fixed up. Our offer lands between 70% and 80% of that number, and that range has to cover both what we pay you and what we spend on the repairs. Your mortgage and back payments get paid off at closing, and you keep the rest.
If a straight cash offer will not cover what you owe, we can also look at creative financing, where we buy the house on terms instead of paying all cash up front. When it makes sense for you, that can stop the foreclosure without you bringing money to closing.
No repairs, no commissions, and we pay all the closing costs. We can usually close in 10 to 14 days. We buy across Hampton Roads: Virginia Beach, Norfolk, Chesapeake, Portsmouth, Suffolk, Hampton and Newport News.
Common Questions About Stopping Foreclosure in Virginia
How long does foreclosure take in Virginia?
Often around six to eight months from the first missed payment. Servicers usually cannot start until you are more than 120 days behind, and you must get at least 60 days’ notice before the sale of a home you live in.
Can I stop a foreclosure sale at the last minute?
Sometimes. Paying off the loan, closing a sale or filing bankruptcy before the auction can stop it. But last-minute options are limited and risky, so act as early as you can.
Can I sell my house if it is in foreclosure?
Yes. You own the house until the foreclosure sale. If you sell first, the loan and back payments get paid off at closing.
Is there a redemption period in Virginia?
No. Once a nonjudicial foreclosure sale is done, Virginia does not give you a right to buy the house back.
Will I owe money after foreclosure in Virginia?
You might. If the sale does not cover your loan, Virginia allows the lender to sue you for the rest.
Facing Foreclosure? Let’s Talk
Call us at (757) 337-2236. No pressure and no judgment. We will look at your situation, give you a number within 24 hours if you want one, and tell you straight if working it out with your lender would be better for you.