Legal Question in Real Estate Law in Virginia
I have a second home in Virginia that is due to be foreclosed 09APR10. My best option is to pursue a Deed in Lieu. The law firm representing the mortgage holder states that "the investor's guidelines do not permit a Deed in Lieu unless the house has been on the market for at least 90 days and there are no other liens against the property." The law firm's letter stated deed in lieu as a option and I did not even get that letter 90 days in advance of the sale date. I am willing to put the house on the market, no problem. Does having a second mortgage in the state of Virginia preclude the option of deed in lieu? What am I missing here?
2 Answers from Attorneys
No, the preclusion of a deed in lieu of foreclosure in a situation where the owner
has a second mortgage on the same property would appear to be a matter
of the so-called "investors' guidelines" and have nothing to do with the laws of
the Commonwealth. In other words, these conditions/requirements
are very likely merely the announced preferences of the note holder and are
not requirements of Virginia law and could therefore be waived if the mortgagor
so chose.
Correction: The above answer should read "mortgagee"(the lender) and not "mortgagor" (the borrower).
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
