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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