Marcus purchased a home in Richmond, Virginia, and financed it through a local bank. He signed a deed of trust at closing. Several years later, Marcus stopped making mortgage payments. Which party has the legal authority to conduct the foreclosure sale without going to court?
Correct Answer
A) The trustee named in the deed of trust
In Virginia's non-judicial foreclosure process, the trustee named in the deed of trust has the authority to conduct the foreclosure sale under the power of sale clause. When the borrower (trustor) defaults, the beneficiary (lender) notifies the trustee, who then follows the statutory procedures to advertise and conduct the sale without any court involvement. This is what makes Virginia a non-judicial foreclosure state.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An adjustable-rate mortgage (ARM) has an interest rate that changes periodically based on market conditions, typically after an initial fixed-rate period. The rate adjustment is tied to a financial index plus a margin.
Closing costs are the fees and expenses paid by the buyer and seller at the closing of a real estate transaction, beyond the purchase price. They typically range from 2-5% of the purchase price.
A conventional loan is a mortgage that is not insured or guaranteed by a government agency such as the FHA, VA, or USDA. It is originated and funded by private lenders and may be conforming or non-conforming.
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