Foreclosure is defined as the action of taking possession of a mortgaged property when the mortgagor fails to keep up the mortgage payments. The Arlington Virginia foreclosure laws provide the mean for a mortgage lender to take the possession and sell a home when the borrower has defaulted on the loan. The money from the sale of the house is then used to pay off the balance of the loan, and the new buyer takes the home free of mortgage. It can also be said that the home becomes collateral for the loan.
There is certain conditions for the foreclosure. It includes the judicial process of foreclosure and the non-judicial process of foreclosure. In the judicial process of foreclosure, no power of sale is present in the deed of trust or mortgage. In this type, the property is auctioned off to the highest bidder soon after the declaration of foreclosure by the court as stated in the Arlington Virginia foreclosure laws. Generally, the borrower has 240 days to redeem the property, from the date of sale. The property can be redeemed by paying the amount of property that was sold with the addition of six percent interest. While on the other hand, in non-judicial process of foreclosure “A power of sale” is the clause that is present in the deed of trust or mortgage. In this clause, the borrower pre-authorizes the sale of property to pay off the balance on loan. In such deeds, the lender or the representative often called as “trustee” executes the power to the lender to sell the property according to Arlington Virginia foreclosure laws. Following are some of the regulations of foreclosure process:
- If the power of sale is mentioned in the mortgage with time, place and terms of sale specification than it is mandatory to follow the specified procedure
- The complete description of the property including legal description, street address, tax map identification, etc. should be mentioned in the foreclosure sale ad as required by the deed.
- The sale that is to be made should not be earlier than 8 days after the first ad is published and not more than 30 days after the last ad is published. The property should be auctioned off to the highest bidder as mentioned in the Arlington Virginia foreclosure laws.
- Once the sale is complete, all the taxes, levies, and assessments with costs and interest are to be discharged.
There is number of ways through which foreclosure can be stopped. First, it is important for the individual to hire a specialized attorney. These lawyers will explore the options for defense which include that either the lender have all the proper documents that are required to prove that they are legally entitled to foreclosure. Furthermore, they also look at the lender’s calculation of mortgage arrears, costs and fees are correct or not. These defense lawyers have the complete knowledge of the Arlington Virginia foreclosure laws. These lawyers legally assist their clients by giving the best advice that is needed to stop foreclosure.