By state law, West Virginia foreclosure can be Judicial or non-judicial, however, non-judicial foreclosure is more common. The out-of-court foreclosure process timeline is about five months.
Before initiating the West Virginia foreclosure process, the lender is required to send a letter to notify the borrower of the impending foreclosure. This letter also serves to inform the borrower of the option to pay off the default and stop the foreclosure proceedings. This is typically called a breach letter or Notice of Default.
According to West Virginia foreclosure law the lender is prohibited from accelerating the loan or take action to possess the property until 10 days following the letter to the borrower. That said, if a borrower has been notified of a default three or more times, he or she may be precluded from stopping the foreclosure by only paying off the default amount.
Of course, the borrower may pay off the entire loan balance and any applicable fees at any time prior to the pending sale of the property which will cause the foreclosure process to end and the sale to be cancelled.
In a West Virginia foreclosure, a borrower will most likely get the right to:
- apply for loss mitigation
- receive notice of the foreclosure
- receive special protections if the borrower or spouse is in the military
- File bankruptcy
- pay off the loan to prevent a foreclosure sale, and
- get any excess money after a foreclosure sale.
Notice of Sale & Auction
If the borrower does not pay off the default amount during the pre-foreclosure period, the lender is allowed to schedule a public auction. The minimum requirement for a non-judicial foreclosure is that there be a publication of the sale notice once a week for two weeks in a local newspaper. However, there are situations where the trust deed requires publication of up to four weeks. A minimum of 20 days before the scheduled auction, a copy of the Notice of Sale must be mailed to the borrower as well as any junior lien holders.
West Virginia foreclosure sales are conducted as public auctions. Opening bids are a minimum of two thirds to three fourths of the estimated value of the property, depending on the county. The property is sold to the highest bidder. A trustee’s deed transferring ownership to the purchaser is recorded within 30 days under most circumstances.
The state of West Virginia provides for no redemption period.
Lenders sometimes allow for a redemption period voluntarily, however this is case by case and will be called for in the deed of Trust or mortgage.