Legal Question in Credit and Debt Law in Virginia

Re: Promissory Note With Deed of Trust

You should probbly retain the services of an attorney in the area where the property is located to determine which may be your most expeditious remedy to obtain your funds which might possibly include an action for judgment on the note and/or foreclosure of the deed of trust on the property.

Re: Promissory Note With Deed of Trust

You have a right to foreclose on the property and have it sold, even with mortgages "senior" to your claim on the mortgage.

However, for "only" $8900, the amount of work involved in foreclosure is probably not worth all of the work, expense and trouble. You certainly can do it. But it might not be your best option.

Another option - and these are NOT mutually exclusive -- is to file a lawsuit. You can file a "Warrant in Debt" if the amount is no more than $15,000. This may take you anywhere from 1 month to 4 months to get a court judgment. However, you can then garnish their bank account or garnish their wages to get the money back.

By contrast, if you foreclose it might take about the same amount of time. But it is a huge pain in the neck to do everything correctly, with notices, etc.

And then you have to find a BUYER for the house who will pay MORE than the amount of the mortgages senior to you.

You cannot get a dime from the sale of the house until the more-senior mortgages are satisfied. (Actually it is much more complicated than the way I am saying it, but that is the net effect. What actually happens is that the mortgage lender can "bid" their mortgage and will be the winner at auction unless someone bids more than the value of the mortgages.)

You can always go back and foreclose later... UNLESS there is something in the deed of trust to the contrary.

The first thing you need to do is READ the deed of trust, very, very carefully. Read it several times.

Same with the Promissory Note. Make sure YOU do everything YOU are required to do according to those documents.

Also, you really need to know where the parties LIVE. This is not a big obstacle. There are ways. But it has to be done. At least to start a lawsuit the easy way instead of the hard way.