West Virginia foreclosure law

West Virginia allows both judicial and non-judicial foreclosures, which means that lenders can foreclose in or out of court. The method used depends on the contents of the mortgage or deed of trust in default. The average West Virginia foreclosure takes 60 days, or approximately two months.

Judicial foreclosure
In a West Virginia judicial foreclosure, the lender files a lawsuit against the borrower for defaulting on the loan. The court has to confirm the default and issue a court order before the lender can proceed with the foreclosure. Once the foreclosure is declared, a public auction is scheduled and the home is sold to the highest bidder.

This process is used when the contract does not include a Power of Sale clause, which would otherwise allow the lender to foreclose outside of court.

Non-judicial foreclosure
The Power of Sale serves as an authorization for the lender to sell the home as payment for the loan in the event of the borrower’s default. This authority may be practiced by the lenders themselves, or extended to a trustee or representative.

The West Virginia non-judicial foreclosure usually follows the terms established in the mortgage or deed of trust. If no terms are specified, the foreclosure proceeds in the following manner:

1) At least 20 days before the sale date, a Notice of Sale is served to the borrower and any lien holders. The same notice is posted on the courthouse door in the county where the home is located, on the home itself, and two other public places in the same county. The notice should contain the following information:

-the date, time, and place of the sale
-the parties to the deed
-the date the deed was signed
-recording information for the deed
-a description of the property in default
-the terms of the foreclosure sale

2) The notice is advertised in a local newspaper once a week for at least four weeks prior to the sale. The ad must meet the requirements for a Class III legal advertisement in the state.

3) The foreclosure sale is conducted at the time indicated in the notice. The winning bidder usually has to pay 1/3 of his bid in cash at the time of the sale, unless the deed specifies otherwise.

Rights of redemption and deficiency judgments
West Virginia does not give borrowers a Right of Redemption, which means they cannot regain possession of the home after the foreclosure sale. Lenders also cannot file for deficiency claims, or sue for any difference between the foreclosure sale price and the amount of the loan.

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