Richmond, Virginia Foreclosure Timeline - Richmond Va. Short Sale Specialist

Action

1

A late charge notice is issued on the 17^th day of delinquency. Collections and various other letters are sent between the 18^th and the 37^th day. On chronic accounts, collections begin as early as the 10^th day of delinquency.

2

Around the 37^th day of delinquency, a HUD I and or a breach letter is issued.

• The HUD 1 letter provides (7) business days for the borrower to respond. The HUD brochure is sent at this time also.
• The breach letter provides a 30 day reinstatement period.

3

If the borrower cannot be reached, calls and "no contact" letters will continue from the 38^th day to the 61^st day

4

At 62 days delinquent, at (3) payments past due the loan is assigned to a loss mitigation queue for a possible work out. Over the next 10 days aggressive efforts are made to contact the borrower.

5

When the loan is 72 days delinquent and there is no contact with the borrower, the loan is recommended for foreclosure and referred to an attorney to commence foreclosure.

6

Once the attorney opens the file, it takes approximately 45 days to arrive at a foreclosure sale date. During the 45 days, the attorney will simultaneously do the following:

• Examine title
• Comply with Federal Fair Collections Debt Act by sending out a 30 day notice providing the borrower with a final warning of the foreclosure and a copy of ads placed in the newspaper. (Generally most Deeds of Trust ((DOT)) require ads to run for once a week for 2 consecutive weeks. Some DOT’s require one ad for 4 weeks. In the newspaper ad, The Code of Virginia only requires Trustee’s to provide a 14 day notice; however, most trustees allow a 30 day timeframe.) The 30 day notice is also sent to Junior lien holders, Homeowner Associations and the IRS. This time also allows the borrower to appeal the debt.
• In Virginia, in cases where the loan has been identified as a "Subprime" loan, the lender/attorney must provide an additional 30 day period in addition to the approximately 45 days if the customer contacts them for a work-out. This may mean that the foreclosure sale would need to be cancelled for a 30 day period to allow the servicer to make a decision or determine if a work-out is possible.
• On the day of the foreclosure sale, loans are approximately 117 days delinquent (4 months) or 147 days if the loan falls under the "Subprime" definition.