Virginia passed a bill amending provisions regarding foreclosed property. Under the bill, a subordinate mortgage lienholder must provide to the trustee and the borrower, at least 60 days prior to requesting a foreclosure sale from the trustee, an affidavit affirming whether monthly statements were sent to the borrower for each period that any interest, fees, or other charges were assessed. The bill also requires the foreclosing subordinate mortgage lienholder to provide a written notice to the borrower, along with the affidavit, stating that a foreclosure sale will be requested from the trustee upon the expiration of 60 days from the date the notice was mailed and advising the borrower of the borrower’s rights if the borrower believes that interest, fees, or other charges have been assessed in error. The affidavit and notice requirements do not apply to the original lender, a servicer acting on behalf of the original lender, or banks or credit unions. In addition, the bill requires a purchaser at a foreclosure sale to certify that the purchaser will pay off any priority (i.e., senior) security instruments no later than 90 days after the date the trustee’s deed conveying the foreclosed property is recorded. The bill becomes effective July 1, 2024.
Click to view the VA HB 184: https://www.tenaco.com/wp-content/uploads/2024/05/VA-HB-184-04-22-24.pdf
