A Virginia buyer is purchasing a home and asks her salesperson, 'If the foreclosure trustee sells my house for more than I owe on the loan, what happens to the extra money?' The salesperson correctly explains that under Virginia's deed of trust foreclosure process, any surplus proceeds after satisfying the deed of trust debt and foreclosure costs are handled in which of the following ways?
Correct Answer
D) The surplus is returned to the trustor after paying off the debt and costs
Under Virginia's deed of trust foreclosure process, after the trustee uses the sale proceeds to satisfy the outstanding loan balance, accrued interest, and foreclosure costs, any remaining surplus is returned to the trustor (borrower). The borrower retains equitable ownership rights in the property, and the deed of trust only secures the amount owed — not any additional equity the borrower has built up.
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