Judicial/ Non-Judicial Foreclosure: Both Judicial & Non-Judicial Foreclosure
Right of Redemption / Deficiency Judgment: No / No
Timeline: 60 Days, Can vary depending on individual cases
Deed of Trust / Mortgage as Security Instruments: Deed of Trust, Mortgage
Judicial Foreclosure process:
If a power of sale clause is not present in the Deed of Trust or Mortgage documents, the Judicial foreclosure process is used. In the Judicial foreclosure process, the lender needs to file a lawsuit against the borrower if the latter happens to default on the mortgage loan. The court verifies the same and authorizes the foreclosure sale during which the property is sold off to the highest bidder through a public auction.
Non-Judicial Foreclosure process:
If a power of sale clause is present in the Deed of Trust or Mortgage documents, the Non-Judicial foreclosure process is used. The power of sale authorizes the lender or their authorized representative (also known as the Trustee) to conduct the foreclosure proceedings in case the borrower happens to default on their mortgage payments. The following guidelines can be followed for the same.
If the power of sale specifies the time, place and other foreclosure sale terms, the same needs to be followed. Otherwise, the following procedure is followed.
A notice of the foreclosure sale needs to be prepared and the same is sent to the borrower and subordinate lien holders (if any), at least 20 days before the foreclosure sale date.
This notice should contain all the details about the borrower, lender, their correspondence addresses, phone numbers, property location and other property details, foreclosure sale date, time, venue, terms of the foreclosure sale, etc.
This notice needs to be pasted on the front door of the county courthouse, to which the property belongs to and also three other public places, one of which needs to be the property itself. The notice should also be advertised once a in week (for four weeks) as a Class-III legal advertisement.
The foreclosure sale is conducted on the date, time and venue as mentioned in the foreclosure notice and the property is auctioned off to the highest bidder. Unless specified otherwise by the Deed of Trust document, the highest bidder needs to pay one-third of the bid value as cash, during the foreclosure sale.
In West Virginia, the borrowers cannot reclaim the property using their right of redemption, once the foreclosure process is complete. The lender cannot file for a deficiency judgment even if the value offered by the highest bidder is less than the total loan amount due by the borrower.