A Virginia real estate instructor is explaining the deed of trust to a pre-license class. Which of the following statements about a Virginia deed of trust is NOT accurate?
Correct Answer
C) The trustee must obtain a court order before conducting a foreclosure sale
Option C is NOT accurate. Virginia is a non-judicial foreclosure state, meaning the trustee does NOT need to obtain a court order before conducting a foreclosure sale. The power of sale clause in the deed of trust gives the trustee authority to sell the property upon default without any court involvement. This is the fundamental distinction between Virginia's non-judicial process and judicial foreclosure states where a court order is required.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
The debt-to-income ratio (DTI) compares a borrower's monthly debt obligations to their gross monthly income. It is used by lenders to determine how much mortgage a borrower can afford.
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