Foreclosure process
Foreclosures in Virginia can move through the system swiftly -- typically in four months:First late-charge notice: Issued on the 17th day of delinquency. Collections and other letters are sent between the 18th and 37th days. On chronic accounts, collections begin as early as the 10th day of delinquency.
On or about the 37th day: A Housing and Urban Development letter or a breach of contract letter is issued. The HUD letter gives the borrower seven business days to respond. The breach letter provides a 30-day reinstatement period.
At 62 days: When three payments are past due, a loan is assigned for a possible loan modification or repayment plan. Over the next 10 days, aggressive efforts are made to contact the borrower.
At 72 days: After no contact with the borrower, the loan is recommended for foreclosure and referred to an attorney to start foreclosure.
Once an attorney opens the file: It takes about 45 days to arrive at a foreclosure sale date. The attorney will send out a 30-day notice providing the borrower with a final warning of the foreclosure. The notice is sent to any other lien holders, homeowner associations and the Internal Revenue Service.
Subprime loans in Virginia: The lender/attorney must provide an additional 30 days if the customer contacts them to work out payments.
On foreclosure sale day: Loans are about 117 days delinquent, four months late, or 147 days if the loan is subprime.
SOURCE: Virginia Foreclosure Prevention Task Force
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