Robert, a licensed Virginia salesperson, is working with a seller whose property is being foreclosed upon. The seller tells Robert, 'My lender said they don't need to go to court — they can just sell my house through the trustee.' Robert's seller asks if this is legal. Robert correctly advises that this process is legal in Virginia because the deed of trust contains a power of sale clause. The seller then asks who the trustee typically is. Which of the following BEST describes the typical trustee in a Virginia deed of trust?
Correct Answer
B) A title company, attorney, or other neutral third party designated in the deed
In Virginia, the trustee in a deed of trust is typically a title company, real estate attorney, or other neutral third party designated in the deed of trust document. The trustee must be independent and neutral — holding legal title on behalf of the beneficiary and having the authority to conduct a non-judicial foreclosure sale under the power of sale clause. The specific trustee is named in the deed of trust at the time of loan origination.
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