Foreclosure Timeline in Virginia

This is based on no contact and no loss mitigation with the borrower, and is considered the earliest foreclosure would happen. These requirements and timeframes are governed by the Insurer/Guarantor, Deed of Trust, Code of Virginia, and Federal Law.

1. A late charge notice is issued on the 17th day of the delinquency. Collections and various other letters can be sent between the 18th and the 37th day. On chronic accounts the collections can begin as early as the 10th day of delinquency.
   
   
2. Around the 37th day of delinquency a HUD-1 and/or a breach letter is issued.
   
   
3. The HUD-1 letter provides (7) business days for the borrower to respond. The HUD brochure is sent at this time as well.
   
   
4. The breach letter provides a 30 day reinstatement period.
   
   
5. If the borrower can not be reached, calls and “no contact” letters will continue from the 38th day to the 61st day.
   
   
6. At 62 days delinquent, at (3) payments past due the loan is assigned to a loss mitigation queue for a possible work out. Over the next 10 days aggressive attempts are made to contact the borrower.
   
   
7. When the loan is 72 days delinquent and there has been no contact with the borrower the loan is recommended for foreclosure and referred to an attorney to commence foreclosure.
   
   
8. Once the attorney opens the file, it takes approximately 45 days to arrive at a foreclosure sale date. During the 45 days, the attorney will simultaneously do the following:
   
   
   1. Examine Title
      
      
   2. Comply with Federal Fair Collections Debt Act by sending out a 30 day notice providing the borrower the final warning of the foreclosure and a copy of ads placed in the newspaper. Most Deeds of Trust require the ads to run once a week for 2 consecutive weeks. Some Deeds of Trust require one ad for 4 weeks. In the newspaper ad, the Code of Virginia only requires Trustees to provide a 14 day notice. Most Trustees do allow a 30 day timeframe though. The 30 notice is also sent to junior lien holders, Homeowner Associations, and the IRS. The timeframe also allows the borrower to appeal the debt.
      
      
   3. In Virginia, in cases where the loan has been identified as “Sub-Prime Loan” the lender/attorney must provide an additional 30 day period to the approximately 45 days if the customer contacts them about a work-out. This may mean the foreclosure sale is cancelled for a 30 day period to allow the lender to make a decision or determine if a work-out is possible.
      
      
   4. On the day of the foreclosure sale the loan is approximately 117 days delinquent (4 months) or 147 days if the loan is considered “Sub-Prime”.