Legal Question in Real Estate Law in Virginia

Foreclosure lien

Can a creditor foreclose on a home with a loan balance of $13000, sell the home for $45000, and place a lien on the original debtor for the ORIGINAL $13000? Is this doble recovery in VA? THEN, UPDATE THE LIEN FOR A SECOND 20 YEARS WHEN THE DEBTOR INQUIRES ABOUT THE EXPIRATION DATE?


Asked on 9/17/07, 8:00 pm

2 Answers from Attorneys
Michael Hendrickson Law Office Michael E. Hendrickson

Re: Foreclosure lien

Correction: This answer should read "for whatever the house sold for at auction and $13K" minus...

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Answered on 9/18/07, 9:39 am
Michael Hendrickson Law Office Michael E. Hendrickson

Re: Foreclosure lien

If the loan or mortgage is in default, then, yes, the lender or note holder could foreclose on the property, but if the property was auctioned for $45K, the creditor would have to return to the debtor the difference between what the house sold for at auction minus whatever amounts can be retained for the costs/charges associated with the foreclosure and auction of the property.

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Answered on 9/17/07, 8:28 pm


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