State Foreclosure Laws

Summary:

Judicial foreclosure: In the absence of a power of sale clause in the loan document authorizing the lender, in the event of default, to sell the property to pay off the loan balance, the lender must sue the borrower in court and obtain an order to foreclose.

Non-judicial foreclosure may be pursued when the loan document does contain a power of sale clause. If the clause contains instructions as to the time, place, and terms of sale, that procedure must be followed. If not, the process is as follows:

1. The notice of sale must be published weekly for four consecutive weeks as a class III legal advertisement in the county in which the property is located.
   
   
2. The notice also must be posted on the door of the courthouse and in three other public places, one of which must be on the subject property at least 29 days prior to the date of sale.
   
   
3. The sale will be a public auction at the time and place specified in the notice. The successful bidder must deposit 1/3 of the sale price with the trustee.
   
   
4. Deficiency judgments are not permitted, and the defaulted owner has no right of redemption.

Links:

• VII Judgment - Rule 55. Default
  Law which regulates when a judgment may be entered for default.
  
  
• Rules of Civil Procedure
  Laws which regulates the process to bring suit to a homeowner.
  
  
• 46A-2-115. Limitation on default charges
  Law which regulates reasonable charges including costs and fees against a homeowner in default.
  
  
• Part 6 Default
  Rights after default; judicial enforcement; consignor or buyer of accounts, chattel paper, payment intangibles or promissory notes.
  
  
• West Virginia State Statutes