West Virginia Foreclosure Law
West Virginia State Foreclosure Law dictates that lenders may avail of the Judicial and Non-Judicial processes to foreclose deeds of trust or mortgages in default. The typical time of process last about 60 days, and the deeds of trust and mortgages are the primary security instruments used. Filing lawsuits for Deficiency Judgments are, generally, not permitted and the borrowers are not allowed to exercise any Right of Redemption.
The Judicial Foreclosure process is used when no power of sale exists in the deeds of trust or in the mortgage. Petitioners have to file a lawsuit in order to obtain a court order to foreclose. It has been a general practice that when the court declares a foreclosure, the property will be auctioned off and will subsequently be awarded to the highest bidder for cash. On the other hand, Non-Judicial Foreclosure is used when a power of sale clause is expressed in the security instruments. “Power of Sale” is the process wherein the borrower agrees to sell the property in dispute to settle the remaining balance from a loan in case of default. Its most obvious difference from the judicial foreclosure is that it doesn’t need any court order to auction off the property as it is already stated in the security instruments. The lender or their duly designated representative, commonly referred to as the “trustee,” may execute the “power of sale.”
West Virginia Power of Sale Foreclosure Guideline
Should the deed of trust or the mortgage contain a power of sale clause, the time, place, and terms of sale specified therein should be strictly followed. Otherwise, the non-judicial foreclosure should be carried out according to the process specified as follows:
- The Notice of Sale must be posted on the entrance of the courthouse of the county where the foreclosed property is located. A copy of the notice must also be posted in a conspicuous place within the property to be sold, plus to other public places, no less than 20 days before the foreclosure sale. The notice must also be sent to the borrower, through certified mail as well as to any subordinate lien holders no less than 20 days before the foreclosure sale.
- The Notice of Sale must also be published as a Class III legal advertisement in a newspaper with a general circulation in the county where the property is located once a week for 4 weeks. The notice must contain the names of the lender and the borrower; the date of the deed; the property’s tax map information; a legal description of the property being foreclosed; and the date, time, place, and terms of the foreclosure sale.
The foreclosure sale must be held at the time and place specified in the foreclosure notice through a public auction. The property will be awarded to the person or entity making the highest bid for cash. Unless the deed specifies the terms of sale, the successful bidder is required to pay one-third of the bid amount in cash right after the foreclosure sale.
Dept. of Housing and Urban Development Charleston Office
405 Capitol Street,
Suite 708
Charleston, WV 25301-1795 Phone: (304) 347-7000
Fax: (304) 347-7050
TTY: (304) 347-5332
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