Virginia Amends Provisions Regarding Foreclosure
The commonwealth of Virginia amended its provisions relating to foreclosure that include notice of sale requirements when the owner is deceased. These provisions are effective on July 1, 2018.
Notice required before sale by trustee to owners and lienors
The amendment provides that, if the secured party receives notification that the owner of the property to be sold is deceased, the notice required shall be given to the last known address of such owner as such address appears in the records of the party secured; any personal representative of the deceased’s estate whose appointment is recorded among the records of the circuit court where the property is located, at the address of the personal representative that appears in such records; and any heirs of the deceased who are listed on the list of heirs recorded among the records of the circuit court where the property is located, at the addresses of the heirs that appear in such records.
Disposition of surplus from trustee’s sale after death of grantor
Whenever the grantor or his successor in title dies prior to a trustee’s sale held pursuant to the deed of trust and the deed of trust contains no definite provision for the distribution of any surplus in the event of the death of the grantor or his successors, then any surplus of the proceeds of the sale remaining in the hands of the trustee shall be applied in order of their priority to the the remaining subsequent debts and obligations secured by the deed, and any liens of record inferior to the deed of trust under which the sale is made, with lawful interest, shall be paid by the trustee to the personal representative of the decedent
Any funds so coming into the hands of the personal representative shall constitute assets for the payment by him or her of any debts and demands against the decedent’s estate remaining unsatisfied after the personal estate has been exhausted.
Rhona Kyeyune, LLM, is a regulatory compliance consultant with CLA. She is a graduate of Makerere University and earned her master of laws at Boston University School of Law.
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