A Virginia real estate broker is conducting a training session on deed of trust foreclosures. She presents four statements about the Virginia non-judicial foreclosure process. Which of the following statements about Virginia's deed of trust foreclosure process is EXCEPT accurate — that is, which statement is INCORRECT?
Correct Answer
C) The lender must file a lawsuit and obtain a court judgment before the trustee may act
Option C is INCORRECT. Virginia is a non-judicial foreclosure state. The lender (beneficiary) does NOT need to file a lawsuit or obtain a court judgment before the trustee may conduct a foreclosure sale. The power of sale clause in the deed of trust grants the trustee this authority contractually, without any court involvement. Requiring a court judgment would describe a judicial foreclosure state, which Virginia is not.
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