Foreclosure Timeline in the State of Virginia

Each state has their own timeline regarding the foreclosure process from the time of the late charge notice to the foreclosure sale date.  The timeline given below is only for the state of  Virginia and not to any other state.  If you are reading this and your home is in another state, please consult an attorney to determine what your state's guidelines and timelines are.

The timeline given below are based on no contact/no loss mitigation with the borrower and is considered the earliest a loan would be foreclosed on.  These requirements and timeframes are governed by the Insurer/Guarantor, Deed of Trust, Code of Virginia and Federal Law. 

1.  A late charge is issued on the 17th day of delinquency.  Collections and various other letters are sent between the 18th and 37th day.  On chronic accounts, collections 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 also sent at this time also.

4.  The breach letter provides a 30 day reinstatement period.

5.  If the borrower cannot 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 efforts are made to contact the borrower.

7.  When the loan is 72 days delinquent and there is 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:

9.  Examine title.

10.  Comply with Federal Fair Collections Debt Act by sending out a 30 day notice providing the borrower with a final warning of the foreclosure and a copy of ads placed in the newspaper.  (Generally most Deeds of Trust (DOT) require ads to run for once a week for 2 consecutive weeks.  Some DOT's require one ad for 4 weeks.  In the newspaper ad, the Code of Virginia only requires Trustee's to provide a 14 day notice; however, most trustees allow a 30 day timeframe).  The 30 day notice is also sent to Junior lien holders, Homeower Associations and the IRS.  This time also allows the borrower to appeal the debt.

11.  In Virginia, in cases where the loan has been identified as "subprime", the lender/attorney must provide an additional 30 day period in addition to the approximately 45 days if the customer contacts them for a work-out.  This may mean that the foreclosure sale would need to be cancelled for a 30 day period to allow the servicer to make a decision or determine if a work-out is possible.

12.  On the day of the foreclosure sale, loans are approximately 117 days delinquent (4 months) or 147 days if the loan falls under the "Subprime" definition.

Please note:  this is not intended to be legal advice, but is only a recap of the foreclosure timeline as indicated in the various codes.  Laws are constantly changing - it is advised that people reading this should use the above only as a guideline and should contact their attorney to get the most up-to-date information regarding the foreclosure timeline.