A Virginia buyer's agent is advising a client who is concerned about a property that is currently subject to a deed of trust foreclosure by the trustee. The buyer wants to purchase the property at the foreclosure auction. The agent correctly advises the buyer that if they successfully purchase the property at the trustee's sale, which of the following BEST describes the title they will receive?

Correct Answer

B) A trustee's deed conveying the title held by the trustee, subject to senior liens

At a Virginia deed of trust foreclosure sale, the successful bidder receives a trustee's deed — the trustee conveys the legal title that the trustee has held during the loan term. This deed does not come with general warranty covenants. Importantly, the buyer takes title subject to any senior liens (liens that have priority over the foreclosed deed of trust), such as property tax liens or a first deed of trust if a second was foreclosed. Junior liens are typically extinguished by the foreclosure. Buyers at trustee's sales must conduct careful due diligence.