A West Virginia lender instructs its trustee to begin foreclosure proceedings after a borrower, David, misses six consecutive mortgage payments on his Parkersburg home. David argues that the lender must file a lawsuit in circuit court before any sale can take place. Which of the following BEST describes the legal situation under West Virginia law?
Correct Answer
A) David is incorrect; West Virginia's deed of trust foreclosure is non-judicial, and the trustee may proceed to sale after proper notice without court involvement
Under the West Virginia Deed of Trust Act (W. Va. Code §§ 38-1-1 et seq.), foreclosure on a deed of trust is a non-judicial process. After a borrower defaults, the trustee — acting under the power of sale granted in the deed of trust — may proceed to conduct a foreclosure sale after providing the required statutory notice. No lawsuit, court judgment, or court order is required at any stage of the process. David's belief that a court filing is necessary reflects a misunderstanding of WV's non-judicial foreclosure system.
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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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