Understanding the foreclosure process in WV is an extremely important part of saving your WV home. The more educated you can be on the topic the easier it’s gonna be to make the right decision.
Before we dive in…
Understanding the Foreclosure Process in WV
What is foreclosure anyway?
Foreclosure is the legal process that lenders use to take back property securing a loan, generally after the borrower stops making payments. This legal process is put in place to protect you as the homeowner to ensure the bank can’t just take your home and kick you out without proper warnings.
Foreclosure is no fun. But just know that it’s not the end of the world.
When you know how foreclosure in WV works… it arms you with the knowledge to make sure you navigate it well and come out the other end as well as possible.
The Basic Stages of A Foreclosure
There are a few stages that are important to any foreclosure process.
Foreclosure works differently in different states around the country.
Pre-foreclosure in Parkersburg WV:
This is the first stage of the process where you are behind on payments, but the bank hasn’t initiated the foreclosure yet. During this stage, the bank will reach out to you and let you know that you are in violation of your agreement, and will more than likely charge you fees/provide ways to get out of the foreclosure. If you have a house in pre-foreclosure that is anywhere near Parkersburg WV please call us immediately! This is by-far the easiest time for us to help you.
Banks do not want to foreclose on your house. They make their money by charging you interest off the money you’ve borrowed, not by selling your house. Make no mistake though, they will foreclose on your Parkersburg WV house in a heartbeat if they have to. If you contact us during this period we can help you avoid foreclosure altogether and we may even be able to allow you to stay in the house. Please don’t wait, call us and we can help!
Types of Foreclosure:
The two ways different states use to foreclose upon a property are: judicial sale or power of sale.
In either scenario, foreclosure typically doesn’t go to court until 3-6 months of missed payments have elapsed. Usually (but not always), a lender will send out many notices that you are in arrears – overdue or behind in your payment. On most residential properties, banks would prefer a power of sale as it is much easier to do and less expensive for them.
Connect with us by calling (304) 679-7527 or through our contact page to have us walk you through the specific foreclosure process here locally in Parkersburg WV.
Under Judicial Foreclosure:
- Your lender has to file in the court system for a hearing.
- You will receive a letter from the court demanding immediate payment.
- If the loan is still valid, you have 30 days (give or take) to show up with the money owed or else you will face foreclosure.
- If you are unable to pay during this period, the lender can request the sale of your property. This typically happens in the form of an auction.
- Immediately after the sale of your property, the sheriff serves you an eviction notice and you must leave the property.
Under Power of Sale (or Non-Judicial Foreclosure):
- Your lender will send you papers that demand payment, and they do not have to file in the court. Judicial review may be used but it is not required.
- You are given a certain amount of time as a waiting period. During this waiting period, you have a chance to pay them enough to get it back. After the waiting period is over, the house is transferred to a trustee.
- The trustee can then sell your property to the lender at a public auction (notice must be given).
Anyone who has an interest in the property must be notified during either type of foreclosure.
For example, any contractors or banks with liens against a foreclosed property are entitled to collect from the proceedings of an auction.
What Happens After A WV Foreclosure Auction?
After the foreclosure auction is over, the amount of the loan is paid off with the proceeds of the sale.
Sometimes, if the sale of the property at auction isn’t enough to pay off the loan, a deficiency judgment can be issued against the borrower.
A deficiency judgement is where the bank gets a judgement against you for the remaining funds they didn’t get. This means even after the foreclosure is completely over, you could still be on the hook. The bank may still leave debt attached to you.
Some states limit the amount owed in a deficiency judgment to the fair value of the property at the time of sale, while other states will allow the full loan amount to be assessed against the borrower.
Here’s a great resource that lists the state by state deficiency judgment laws, since every state is different.
Generally, it’s best to avoid a foreclosure auction. Instead, call up the bank, or work with a reputable real estate firm like us at Appalachian Homes to help you negotiate discounts off the amount owed to avoid having to carry out a foreclosure.
Experienced investors can help you by negotiating directly with banks to lower the amount you owe in a sale – or even eliminate it, even if your home is worth less than you owe.
If you need to sell a property near Parkersburg, we can help you.
We buy houses in Parkersburg WV like yours from people who need to sell fast.
Give us a call anytime (304) 679-7527 or
fill out the form on this website today! >>
Another Foreclosure Resource For Parkersburg WV HomeOwners: