Foreclosure Process and Laws in Virginia

Facing foreclosure can be overwhelming, but understanding the Virginia foreclosure process is the first step toward protecting your home and your rights. Virginia foreclosure law specifies how foreclosure procedures work, and federal and state laws give you rights and protections throughout the process.

Virginia foreclosure laws permit a nonjudicial process, which means foreclosures can move quickly. This guide breaks down the Virginia foreclosure process, explains your legal rights as a homeowner, and provides potential options for avoiding foreclosure.

What Are My Foreclosure Rights in Virginia?

Both federal and state laws govern foreclosure procedures in Virginia, and your mortgage documents also give you rights during the process.

Your Mortgage Rights in Virginia

If you get a loan to buy a home in Virginia, you'll likely sign two documents: a promissory note and a deed of trust (which is like a mortgage).

• Promissory note. The promissory note is the document that contains your promise to repay the loan along with the repayment terms.
• Deed of trust. The deed of trust is the document that gives the lender a security interest in the property and will probably include a power of sale clause. If you fail to make the payments, the power of sale provision gives the lender the right to sell the home nonjudicially so it can recoup the money it loaned you.

You also get rights under the deed of trust and promissory note. For example, if you're late making your monthly payment, most promissory notes provide a grace period of ten to fifteen days before you'll incur late charges. To find out the grace period in your situation and the amount of the late fee, review the promissory note or your monthly billing statement.

If you default on payments, most deeds of trust require the lender to send you a breach letter (a preforeclosure notice) before officially starting a foreclosure. This notice tells you that the loan is in default. If you don't cure the default, the lender can accelerate the loan (call it due) and go ahead with the foreclosure.

Your Rights Under Federal Foreclosure Laws

In most cases, federal mortgage servicing laws require the loan servicer to contact you (or attempt to contact you) by phone to discuss foreclosure alternatives, called "loss mitigation" options, no later than 36 days after a missed payment and again within 36 days after each following missed payment. (12 C.F.R. § 1024.39 (2025).)

No more than 45 days after a missed payment, the servicer must let you know in writing about loss mitigation options that could be available and assign personnel to help you. There are a couple of exceptions to these requirements, like if you file for bankruptcy or tell the servicer not to contact you under the Fair Debt Collection Practices Act. (12 C.F.R. § 1024.39) (2025).)

Federal law also generally requires the servicer to wait until the loan is over 120 days delinquent before officially starting a foreclosure. But in a few situations, like if you violate a due-on-sale clause or if the servicer is joining the foreclosure action of a superior or subordinate lienholder, the foreclosure can begin sooner. (12 C.F.R. § 1024.41 (2025).)

Protections If You're in the Military

If you're in the military, the federal Servicemembers Civil Relief Act provides certain legal protections against foreclosure.

Additional Foreclosure Rights

Under state law, you get the right to:

• receive notice of the foreclosure sale
• pay off the loan to prevent a sale ("redeem" the property prior to the sale), and
• get any excess money after a foreclosure sale.

What Are the Different Types of Foreclosure in Virginia?

Foreclosures in Virginia are usually nonjudicial. But judicial foreclosures are also allowed.

Judicial Foreclosure Process

A judicial foreclosure begins when the lender sues a delinquent borrower in court. To start the lawsuit, the lender (the plaintiff) files a document called a "complaint for foreclosure" or "petition for foreclosure" in court and serves it to the borrower along with a summons. The case then goes through the litigation process.

Nonjudicial Foreclosure Process

Generally, in a nonjudicial foreclosure, the foreclosure happens with little or no court oversight. A Virginia nonjudicial foreclosure has no court involvement.

What Are the Steps in the Virginia Foreclosure Process?

Again, most Virginia foreclosures are nonjudicial. Virginia law doesn't require a lender to do much to complete an out-of-court foreclosure. The minimal steps required include sending you one notice and publishing a notice of the sale in a newspaper.

Notice of the Foreclosure

Before a foreclosure sale can occur, the lender or trustee has to serve (mail) a notice of sale to you (the homeowner) no less than 60 days (previously, state law required 14 days) before the sale if the home is owner-occupied and must include information about legal aid and how to contact a HUD-approved housing counselor. (Va. Code § 55.1-321 (2025).)

If the deed of trust involves an owner-occupied residential property, the foreclosure trustee can't sell the property without getting an affidavit signed by the party that provided the notice of the foreclosure, confirming the notice was sent to the owner, along with a copy of such notice attached to the affidavit. (Va. Code § 55.1-320 (2025).)

Publication in a Newspaper

The lender or trustee also has to publish the notice of sale in a newspaper in the manner specified in the loan contract, though not less than once per week for two weeks or three days if published on consecutive days. If the loan agreement doesn't give publishing requirements, the notice must be published once per week for four weeks, or on five consecutive days. (Va. Code § 55.1-322 (2025).)

Foreclosure Auction

The sale, which is an auction, may be held no earlier than eight days after the first advertisement and no more than 30 days after the last advertisement is published. (Va. Code Ann. § 55.1-322 (2025).)

Virginia Foreclosure Eviction Laws

After a Virginia nonjudicial foreclosure, the purchaser that bought the home at the foreclosure sale may start a separate unlawful detainer (eviction) action. The foreclosed homeowner might get a five-day notice to quit (leave).

While you can stay in the property until you're forcibly removed through the eviction process, it's generally best to leave before the deadline to move out given in the notice to quit expires.

What Are the Options Available for Borrowers During Foreclosure in Virginia?

You might be able to prevent a foreclosure sale by reinstating the loan, redeeming the property before the sale, filing for bankruptcy, or working out a loss mitigation option, like a loan modification, short sale, or deed in lieu of foreclosure.

Right to Reinstate Before the Foreclosure Sale in Virginia

"Reinstating" is when a borrower pays the overdue amount, plus fees and costs, to bring the loan current and stop a foreclosure.

Virginia law doesn't provide the borrower with a right to reinstate the loan. But the deed of trust you signed when taking out the loan might provide a deadline for completing a reinstatement. You can also call your loan servicer and ask if the lender will let you reinstate.

What Is the Redemption Period in Virginia Foreclosures?

Some states have a law that gives a foreclosed homeowner time after the foreclosure sale to redeem the property. Virginia, however, doesn't have a law providing a post-sale redemption period. So, you won't be able to redeem the home following a foreclosure.

You do get the right to redeem the home before the sale by paying off the entire mortgage loan. However, in practice, borrowers rarely redeem prior to a foreclosure sale. Most homeowners facing foreclosure lack the financial means to pay off the entire loan balance, plus additional fees and costs.

Filing for Bankruptcy

If you're facing a foreclosure, filing for bankruptcy might help. Once you file for bankruptcy, something called an "automatic stay" goes into effect. The stay functions as an injunction prohibiting the lender from foreclosing on your home or trying to collect its debt, at least temporarily.

In many cases, filing for Chapter 7 bankruptcy can delay the foreclosure by a matter of months and eliminate other debts. But if you're behind in mortgage payments when you file, you probably won't be able to keep your home. To stay in your house, you must be current on payments and be able to protect your equity with an exemption. However, you won't owe anything after foreclosure because Chapter 7 erases mortgage debt. If you want to save your home and you're behind in payments, filing for Chapter 13 bankruptcy might be the answer. To find out about the options available, speak with a local bankruptcy attorney.

Deficiency Judgments Following the Sale in Virginia

Sometimes, a foreclosure sale doesn't bring in enough money to pay off the full amount owed on the loan. The difference between the sale price and the total debt is called a "deficiency balance."

Many states, including Virginia, allow the lender to get a personal judgment, called a "deficiency judgment," for this amount against the borrower. The lender must file a separate lawsuit after the foreclosure sale to get a deficiency judgment. (Va. Code § 8.01-241 (2025).)

What Are the Potential Consequences of Foreclosure?

The biggest impact of foreclosure (aside from losing your home) is the damage to your credit. A foreclosure can significantly lower your credit scores and will stay on your credit reports for seven years. This can make it harder to qualify for future loans, credit cards, or even get good interest rates.

In some cases, you might also be responsible for a deficiency judgment (see above). Lastly, a foreclosure on your record can make it more difficult to find new housing, as landlords often check a prospective tenant's credit history during the rental application process.

What to Do If You're Facing Foreclosure in Virginia

• Don't ignore the mail. Important foreclosure notices and potential options for avoiding foreclosure will come by mail. Open everything, and read it carefully.
• Talk to your loan servicer. If you've missed payments, reach out to your loan servicer. Keeping the lines of communication open can help you stay informed about where you stand in the foreclosure process and what options might be available, like a repayment plan or loan modification.
• Understand your rights and explore your options. Know your legal rights and the foreclosure process in Virginia. In some cases, you might be able to fight the foreclosure in court, especially if there were legal violations. Other possible options include applying for a loan modification, pursuing a short sale, or agreeing to a deed in lieu of foreclosure. Each option comes with pros and cons. Virginia foreclosures can move fast, so you should act quickly.
• Watch out for scams. Unfortunately, foreclosure scams are common. Be cautious of anyone who asks for upfront fees or promises guaranteed results. If it sounds too good to be true, it probably is.

Resources for Virginia Homeowners Facing Foreclosure

Foreclosure laws are complicated. Servicers and lenders sometimes make errors or forget steps. If you think your servicer or lender failed to complete a required step, made a mistake, or violated state or federal foreclosure laws, you might have a defense that could force a restart to the foreclosure, or you might have leverage to work out an alternative. Consider talking to a local foreclosure attorney or legal aid office immediately to learn about your rights. VALegalAid.org provides foreclosure prevention information and, in some cases, legal assistance to homeowners facing foreclosure.

Also, a HUD-approved housing counselor can provide helpful information (at no cost) about various alternatives to foreclosure.