West Virginia Foreclosure Laws

A West Virginia foreclosure can be accomplished either through judicial or non-judicial process. Typical timeline may take 60 to 90 days. However, the process may be delayed due to the following reasons: the borrower seeks delays, a bankruptcy is filed, or the sale is postponed.

Judicial And Non-Judicial Foreclosures

Since West Virginia foreclosure laws allows for both judicial and out-of-court foreclosures, a Power of Sale clause decides the foreclosure method to be used. This provision, when signed by the borrower, authorizes the lender to foreclosure a property (in the event that the borrower defaults on payments) without obtaining a court order. The borrower is aware of the outcome if he or she fails to meet the terms in the contract. An out-of-court foreclosure takes place when the loan document contains a Power of Sale provision.

With non-judicial foreclosures, the lender is required to mail a Notice of Default to the borrower. This informs the borrower that there is an impending foreclosure on his or her property due to unpaid loans. The borrower is given 10 days to provide a payment to the lender. If payment is not procured, the lender can pursue a foreclosure. However, the borrower may stop the foreclosure process at any time up until the date of the sale. To do this, the borrower has to make a full payment of the unpaid loan plus any additional costs.

A judicial West Virginia foreclosure is handled in court. This occurs when the Power of Sale clause is not signed in the loan agreement. To set off a judicial foreclosure, the lender files a suit along with a lis pendens (a recorded, public document that contains information about an impending foreclosure on a property in question) against the defaulted borrower in court. If the court finds sufficient evidence against the defaulted borrower, a foreclosure sale will be scheduled. This is the option to satisfy the borrower’s debt.

Foreclosure laws in West Virginia do not permit after-sale statutory right of redemption. Borrowers whose property has been foreclosed cannot reclaim property ownership because a sale is final. In addition, a deficiency judgment may not be allowed. Other states which allow deficiency claims require for the borrower to pay for the difference between amount of the property sold and the amount of the original loan to the lender.

Foreclosure sales are conducted in a form of a public auction where the property is auctioned off to the highest bidder. At the auction, the opening bid is usually set at 2/3 – 3/4 of the property’s market value.

Notice Of Sale West Virginia

A Notice of Sale is indispensable and should be published in a local newspaper twice for 2 weeks. In addition, a copy of the Notice should be sent to the homeowner at least 20 days prior to the date of the auction.