Legal Question in Real Estate Law in Virginia

Re: home foreclosure

Generally, lenders prefer to receive a loan payoff and not go through with a foreclosure. Your boyfriend will have to execute a deed with you in order to convey the entire interest in the property to a possible purchaser. You will be responsible, with your boyfriend, for any unpaid balance on the debt as I presume you both executed the promissory note.

Re: home foreclosure

If you are both on the deed and on the note, to avoid litigation,both of you need to cooperate in terms of selling the property. I suggest you contact an attorney knowledgeable about loss mitigation and short sales.

Re: home foreclosure

If the house goes to foreclosure and is sold at auction, you as well as your boyfirend could be jointly and severally liable for any deficiency which results from this sale (depending upon whether the mortgage was a recourse or non recourse loan).

The former would permit the lender (or its successor in interest) to pursue the original borrowers(you and boyfriend, presumably) for any deficiency which may result from the foreclosure sale of the property and to have a judgment entered against one or both of them for the full amount resulting from this shortfall.