Foreclosure is the legal process effected through the court system in which a mortgagee (lender—often a bank) terminates a mortgagor’s (borrower’s) interest in the real property in which the mortgagor gave the mortgagee a security interest (a lien) as collateral for the loan used to purchase the property.

Foreclosure generally occurs when a homeowner defaults and fails to make mortgage payments as required by the loan agreement (promissory note).

Foreclosure allows the lender to seize the property, remove the homeowner, and sell the home—all of which are legal remedies the mortgagor and mortgagee agreed to in the mortgage contract.

In Virginia, foreclosure is a legal process that allows a lender to terminate a borrower's interest in a property due to default on mortgage payments. Virginia primarily uses the non-judicial foreclosure process, which means that the foreclosure can proceed without court intervention if the mortgage agreement includes a 'power of sale' clause. This clause authorizes the lender to sell the property to recover the unpaid loan balance after providing the borrower with the required notice. The lender must follow specific procedures, including sending a notice of default and a notice of sale to the borrower. The notice of sale must also be published in a local newspaper. If the property is sold at a foreclosure auction, the proceeds go towards paying off the mortgage debt, with any surplus returned to the borrower. If the sale does not cover the full amount owed, the lender may seek a deficiency judgment against the borrower for the remaining balance. Borrowers in Virginia have the right to pay off the debt and stop the foreclosure process up until the date of the sale, a right known as 'equity of redemption'. It's important for homeowners facing foreclosure in Virginia to consult with an attorney to understand their rights and options under state law.