In West Virginia, an out-of-court foreclosure process is most common. Before initiating the foreclosure process, the lender sends a letter to notify the borrower of the impending foreclosure. This letter also serves to inform the borrower of the option to pay off the default and stop the foreclosure proceedings.
According to state code, the lender can’t accelerate the loan (make the full loan balance due immediately) or take action to possess the property until 10 days following the letter to the borrower, although if a borrower has been notified of a default three or more times, he or she may not be able to stop the foreclosure by simply paying off the default amount. The borrower can pay off the entire loan balance and any applicable fees at any time prior to the pending sale of the property, causing the foreclosure process to terminate and the sale to be cancelled.
Notice of Sale / Auction
If the borrower doesn’t pay off the default amount during the pre-foreclosure period, the lender can schedule a public auction. The minimum requirement for an out-of-court foreclosure is that there be a publication of the sale notice once a week for two weeks, but sometimes the trust deed may require publication of up to four weeks. A minimum of 20 days before the scheduled auction, a copy of the notice of sale must be mailed to the borrower and junior lien holders.
Foreclosure sales in West Virginia are conducted as public auctions, and bids are usually a minimum of two thirds to three fourths of the estimated value of the property. The property is sold to the highest bidder at the auction, and a trustee’s deed transferring ownership to the purchaser is usually recorded within 30 days.
The state of West Virginia provides for no redemption period, but lenders may allow for a redemption period voluntarily. According to federal law, the IRS as a lien holder has a post-sale redemption period of 120 days.