A real estate exam candidate from Ohio is studying for the Virginia state portion. She notes that in Ohio, foreclosure requires a court judgment. She asks her instructor how Virginia's process differs. Which statement BEST describes Virginia's foreclosure process under a deed of trust?
Correct Answer
A) Virginia's trustee conducts a non-judicial sale under the power of sale clause without court involvement
Virginia is a non-judicial foreclosure state. The trustee in a deed of trust has the authority to conduct a foreclosure sale under the power of sale clause without obtaining a court judgment or court involvement. This contrasts with judicial foreclosure states like Ohio, where the lender must sue the borrower and obtain a court order before proceeding. Virginia's process is faster and does not require the borrower's consent.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Closing costs are the fees and expenses paid by the buyer and seller at the closing of a real estate transaction, beyond the purchase price. They typically range from 2-5% of the purchase price.
A conventional loan is a mortgage that is not insured or guaranteed by a government agency such as the FHA, VA, or USDA. It is originated and funded by private lenders and may be conforming or non-conforming.
The debt-to-income ratio (DTI) compares a borrower's monthly debt obligations to their gross monthly income. It is used by lenders to determine how much mortgage a borrower can afford.
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