Sandra purchases a home in Virginia Beach using a deed of trust. She later defaults on her loan payments. Under Virginia law, who has the authority to conduct the foreclosure sale without obtaining a court order?
Correct Answer
D) The trustee, exercising the power of sale clause
Virginia is a non-judicial foreclosure state. When a borrower defaults, the trustee has the authority to conduct a foreclosure sale under the power of sale clause contained in the deed of trust — without any court involvement. This process is faster than judicial foreclosure states because no lawsuit or court order is required.
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Related Topics & Key Terms
Key Terms:
Related Concepts
In the context of foreclosure, a deed transfers ownership of the foreclosed property to the new owner, typically the buyer at a foreclosure sale.
Discount points are upfront fees paid to a lender at closing to reduce (buy down) the interest rate on a mortgage loan. One point equals 1% of the loan amount and typically reduces the rate by approximately 0.25%.
An FHA loan is a mortgage insured by the Federal Housing Administration that allows lower down payments and credit scores than conventional loans. It is designed to help first-time homebuyers and borrowers with limited resources.
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