Virginia Foreclosure Timeline & Process
- Mortgage payment is due 1st of the month. Most lenders give a 15-day grace period for homeowners to send in the payment before the payment is considered delinquent.
- Day 17, a late charge notice will be issued to the homeowner. The homeowner will be charged a late fee and possibly other fees.
- Days 18 – 37, collection notices and other letters are sent to homeowner. The lender may try to telephone the homeowner.
- After day 37, a HUD-1 or a breach letter is sent to the homeowner. The HUD-1 letter provides 7 business days for the homeowner to respond. The breach letter provides a 30-day reinstatement period for the homeowner to get current with the mortgage.
- Days 38 – 61, if the homeowner is still delinquent and the mortgage company has not been able to talk to the homeowner, “no contact” letters will be sent.
- Day 62, the homeowner is now three payments delinquent. The loan may be assigned to loss mitigation processing for a possible resolution with the homeowner. The mortgage company makes repeated attempts to reach the homeowner over the next 10 days.
- Day 72 if still no contact with the homeowner, the loan can be recommended for foreclosure. An attorney can begin formal foreclosure proceedings and a foreclosure sale can occur as soon as in 45 days.
- Days 73 – 117, if the attorney begins the process immediately, during the next 45 days the attorney completes the legal process, including running the required advertisements in local newspapers announcing the sale. Homeowner is sent a 30-day notice of foreclosure with a final warning and a copy of the newspaper ads.
- Day 117, 45 days after the loan was recommended for foreclosure, or about four months since the first missed payment, foreclosure can occur, unless it is a subprime loan.
- Days 118 – 147, if the homeowner’s loan is identified as subprime, the homeowner has an additional 30 days to try to resolve the situation. But the homeowner must contact the mortgage company to request the time to work out a resolution.
- Day 147, or about five months since the first missed payment, if the loan is subprime, foreclosure can occur.
Virginia offers no right of redemption (giving homeowners a certain number of days to buy back their home by paying all delinquent payments, fees, interest and other charges.)