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West Virginia Foreclosure Law
Summary
Quick Facts
- Judicial Foreclosure Available: Yes
- Non-Judicial Foreclosure Available: Yes
- Primary Security Instruments: Deed
of Trust, Mortgage
- Timeline: Typically 60 days
- Right of Redemption: No
- Deficiency Judgments Allowed: No
In West Virginia, lenders may foreclose on deeds of trusts
or mortgages in default using either a judicial or non-judicial
foreclosure process.
Judicial Foreclosure
The judicial process of foreclosure, which involves filing
a lawsuit to obtain a court order to foreclose, is used
when no power of sale is present in the mortgage or deed
of trust. Generally, after the court declares a foreclosure,
the property will be auctioned off to the highest bidder.
Non-Judicial Foreclosure
The non-judicial process of foreclosure is used when
a power of sale clause exists in a mortgage or deed of
trust. A "power of sale" clause is the clause
in a deed of trust or mortgage, in which the borrower
pre-authorizes the sale of property to pay off the balance
on a loan in the event of the their default. In deeds
of trust or mortgages where a power of sale exists, the
power given to the lender to sell the property may be
executed by the lender or their representative, typically
referred to as the trustee. Regulations for this type
of foreclosure process are outlined below in the "Power
of Sale Foreclosure Guidelines".
Power of Sale Foreclosure Guidelines
If the deed of trust or mortgage contains a power of
sale clause and specifies the time, place and terms of
sale, then the specified procedure must be followed. Otherwise,
the non-judicial power of sale foreclosure is carried
out as follows:
- The notice of sale must be posted on the front door
of the courthouse for the county in which the property
to be sold is located, and three (3) other public places,
one of which must be the property itself, at least twenty
(20) days prior to sale. The notice must also be served
upon the borrower and subordinate lien holders at least
twenty (20) days prior to the foreclosure sale.
Additionally, the notice must be published as a Class
III legal advertisement in the county where the property
is located once a week for four (4) weeks.
Said notice must contain the time and place of the foreclosure
sale, the names of the parties to the deed, the date
of the deed, recording information, a property description
and the terms of the sale.
- The sale must be held at the time and place stated
in the foreclosure notice and completed by public auction
to the highest bidder. Unless the deed specifies the
terms of sale, the buyer must pay one-third (1/3) of
the bid amount in cash at the sale.
Deficiency actions are generally not permitted in West
Virginia and there are no rights of redemption.
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