Stop Foreclosure in Virginia:

Complete Guide

By John G. Merna, Esq. | Last Reviewed: June 2026 | The Merna Law Group, P.C.

Losing your home to foreclosure is one of the most frightening financial experiences a family can face. In Virginia, the foreclosure process moves faster than in most states — and many homeowners do not realize how little time they have to act until the sale is already scheduled. This guide explains how Virginia foreclosure works, what your rights are, and what steps can stop it.

How Foreclosure Works in Virginia

Virginia is primarily a non-judicial foreclosure state, meaning that in most cases a lender does not need to file a lawsuit or obtain a court order to foreclose. Instead, the process is governed by the deed of trust you signed when you took out your mortgage, which typically includes a power of sale clause giving the lender authority to sell the property if you default.

Because there is no required court involvement, Virginia foreclosure can be completed faster than in states where lenders must sue first. Understanding the timeline is essential.

The Virginia Foreclosure Timeline

Federal Protection — 120 Days Before Formal Start

Under federal mortgage servicing rules (12 C.F.R. § 1024.41), a servicer generally cannot begin formal foreclosure until you are more than 120 days delinquent. During this period, the servicer must contact you to discuss foreclosure avoidance options including modifications, repayment plans, and forbearance.

60-Day Notice Required

Once formal foreclosure begins, Virginia law (Va. Code § 55.1-321) requires the lender or trustee to serve you written notice of the sale at least 60 days before the sale date for owner-occupied property. This notice must include information about legal aid and HUD-approved housing counselors.

Newspaper Publication

The trustee must publish notice of the sale in a local newspaper. Under Va. Code § 55.1-322, the sale can proceed no sooner than eight days after the first publication and no later than 30 days after the last publication.

The Foreclosure Sale

Most Virginia foreclosure sales take place at the Circuit Court steps of the city or county where the property is located. The property sells to the highest bidder — often the lender itself. Virginia has no right of redemption — once the sale completes and the deed transfers, the former homeowner has no legal right to reclaim the property.

Deficiency Judgment

If the sale price is less than the total amount owed, the lender may pursue a deficiency judgment for the remaining balance (Va. Code § 8.01-241). The lender must file a separate lawsuit to obtain this judgment within the time allowed by law.

Your Rights as a Virginia Homeowner in Foreclosure

• Right to notice: You must receive the required 60-day written notice before the sale for owner-occupied homes (Va. Code § 55.1-321).
• Right to cure: In many cases you can stop the foreclosure by paying all overdue amounts, fees, and costs before the sale — called reinstatement. Your deed of trust specifies reinstatement rights and deadlines.
• Right to contest: If the lender or trustee failed to follow required notice procedures, you may have grounds to challenge the foreclosure. This requires prompt legal action.
• Right to housing counseling: The required notice must include information about HUD-approved counselors who can advise you at no cost about your options.
• Right to bankruptcy protection: You can file bankruptcy at any point before the sale completes to trigger the automatic stay and halt the foreclosure.

How to Stop a Foreclosure in Virginia

Option 1 — Chapter 13 Bankruptcy (Most Effective)

Filing Chapter 13 bankruptcy is the most powerful tool available to Virginia homeowners facing foreclosure. The moment your petition is filed, the automatic stay under 11 U.S.C. § 362 activates — stopping the foreclosure immediately, even if the sale is scheduled for that same day.

Beyond stopping the sale, Chapter 13 lets you catch up on missed mortgage payments through a court-approved plan over three to five years. As long as you make your ongoing mortgage payment plus the plan payment for arrears, the lender cannot foreclose. Chapter 13 can also strip a second mortgage if your home is underwater on the first, and restructure other debt simultaneously.

Option 2 — Chapter 7 Bankruptcy (Temporary Relief)

Filing Chapter 7 bankruptcy also triggers the automatic stay and will temporarily stop a foreclosure. However, Chapter 7 does not allow you to catch up on arrears through a plan. Once the discharge is entered — typically four to six months — the lender can resume foreclosure if you remain in default. Chapter 7 can buy time, discharge other debts to free up income, and may help you negotiate a modification from a stronger position.

Option 3 — Loan Modification

A modification changes your mortgage terms — typically reducing the interest rate, extending the loan term, or adding arrears to the back of the loan. Servicers must evaluate you for available loss mitigation options before completing a foreclosure. A modification, if approved, can make payments permanently more affordable. Modifications require lender approval and take time. Our attorneys can assist with the process and, if necessary, file bankruptcy to stop the foreclosure while a modification is under review.

Option 4 — Reinstatement

Reinstatement means paying the full amount of overdue payments, late fees, and allowable costs to bring the loan completely current. Once reinstated, the foreclosure stops and your mortgage continues on its original terms. This requires access to sufficient funds — often from a family member, retirement account, or sale of other assets.

Option 5 — Short Sale or Deed in Lieu

If saving the home is not realistic, a short sale (selling for less than owed, with lender approval) or a deed in lieu of foreclosure (voluntarily transferring title to the lender) can reduce credit damage compared to a completed foreclosure. These require lender approval and may still result in a deficiency balance unless specifically waived.

What Happens After Foreclosure?

• Credit impact: A foreclosure typically remains on your credit report for seven years from the date of the first missed payment that led to it.
• Deficiency judgment risk: The lender may sue for any remaining balance after the sale. Bankruptcy can eliminate a mortgage deficiency judgment in many situations.
• Future homeownership: Most mortgage programs have defined waiting periods after foreclosure. FHA loans typically require three years from the completion date.

Frequently Asked Questions — Foreclosure in Virginia

Can bankruptcy stop a foreclosure sale scheduled for today?

Yes. The automatic stay activates the moment your petition is filed — before any judge reviews it. If a sale is scheduled today, filing before it occurs stops it. Call us immediately at 1-800-662-8813 if you are in this situation.

How many mortgage payments can I miss before foreclosure starts?

Federal law generally prohibits servicers from beginning formal foreclosure until you are more than 120 days delinquent (12 C.F.R. § 1024.41). Most servicers begin formal default notices after 90 to 120 days. The required 60-day written notice of sale is a separate step once formal proceedings begin.

Is there a right of redemption after a Virginia foreclosure sale?

No. Virginia does not have a statutory right of redemption after a non-judicial foreclosure. Once the sale completes and the deed transfers, the former owner generally has no right to reclaim the property. Stopping the sale before it occurs is essential.

Can I stay in the home after foreclosure?

Temporarily. The new owner must initiate a separate eviction (unlawful detainer) proceeding to remove occupants. This provides additional time but no legal protection against eventual removal.

Will I owe money after foreclosure?

Possibly. If the sale price is less than your total mortgage debt, the lender can file a separate lawsuit for the deficiency (Va. Code § 8.01-241). Whether this occurs depends on the lender and the deficiency amount. Bankruptcy can eliminate a mortgage deficiency in many situations.

Can I get a loan modification while in Chapter 13 bankruptcy?

Yes. Many clients file Chapter 13 to stop the foreclosure and pursue a modification simultaneously. If the modification is approved, the plan can be adjusted accordingly. This is a common and effective strategy for clients who want to keep their home long-term.

Talk to a Virginia Foreclosure Attorney — Free Consultation

If you have received a foreclosure notice or are behind on your mortgage, do not wait. The options available to you decrease as the sale date approaches. Our attorneys have helped thousands of Virginia homeowners in Virginia Beach, Newport News, Richmond, Norfolk, Chesapeake, and Hampton save their homes through Chapter 13 bankruptcy and other foreclosure defense strategies.

We offer free consultations by phone or video — and the entire bankruptcy process can be completed without leaving your home. Call 1-800-662-8813 or book online. Everything you share is completely confidential.

Last reviewed by John G. Merna, Esq. | June 2026 | The Merna Law Group, P.C. is a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.