Stop foreclosure sale in Virginia

1. Foreclosure is a complex procedure which takes place due to the non-payment of the mortgage. It happens when a homeowner does not pay the mortgage amount for some reason after the period is exhausted. When this is the case, the lender has the very right to take back the home to sell off the property and recover the amount they have invested. Following are the ways which one can adopt to stop a foreclosure sale in Virginia: Loan modification: When a homeowner misses on the third mortgage payment, the lender files a Notice of Default which is also called as NOD. It is the best time for the owner to apply for a loan modification because it will help in avoiding the foreclosure process. It will stop a foreclosure sale in Virginia while the lender will review the application. When the loan is approved, the foreclosure process ends completely. In case loan modification is denied, then one has to go for the appeals process, which can go on for several months. Filing a lawsuit: The homeowner has the very right to file a lawsuit against the lender to challenge the foreclosure as it may delay or stop it. This method can be taken into consideration if the lender employs a non-judicial foreclosure process – which means the foreclosure is done outside the court. The biggest downside of this process is, if the homeowner for any reason is unable to prove the case, it will delay the foreclosure proceedings and won’t benefit them. Quick short sale: After filing Notice of Default and before scheduling the foreclosure, the homeowner has the right to sell his property, and if they get an offer from the buyer, the lender is liable to consider it. For more clarification on this clause, the homeowner must discuss the case with a real estate dealer and get an idea of the property’s market value. A homeowner can sell the property within two weeks after the issuance of notice. It means one can sell the property with risking the damage of foreclosure on their credit score. Filing Bankruptcy: Bankruptcy is the last resort to stop the foreclosure sale in Virginia when loan modification and filing lawsuit options fail. When a homeowner files for bankruptcy, federal law prohibits the lender from connecting with them for collection activity. It gives them enough time of three to five years to pay their overdue amounts. The negative point of filing bankruptcy is that it can reduce the person’s credit score by a great deal. So, it is always advisable to get in touch with a bankruptcy attorney to clarify all the doubts before one thinks of filing it. With proper guidance and support, one can stop the foreclosure process, and the situation can be resolved with success. Recently, there have been several amendments in the foreclosure law that has opened up enough scope for the homeowners to keep their home. So, one must educate themselves and know about stop the foreclosure sale in Virginia rights.