Virginia Amends Provisions Relating to Foreclosure, Notices of Sale for Deceased Owners, and Disposition of Sale Surplus

The state of Virginia recently enacted House Bill 755 that amends provisions of Virginia statutes relating to foreclosure, notices of sale when an owner is deceased, and disposition of surplus from sale, effective July 1, 2018.

The updated provisions provide that when a trustee is making a sale pursuant to a deed of trust, and the owner of the property is deceased, the notice of sale must be delivered to the following locations: (1) the last known address of the deceased owner; (2) any personal representative of the deceased’s estate whose appointment is recorded in the circuit court records where the property is located; and (3) any heirs of the deceased as recorded in the land records where the property is located.

House Bill 755 also updates the Virginia provisions regarding the disposition of surplus from a trustee’s sale after the death of a grantor.  The amendment includes additional items on the list of debts that must be paid off using surplus from a sale that occurs after the death of an owner, prior to paying off the remainder of the surplus to the decedent’s personal representative.  Those additional items include any 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.

 More information regarding Virginia House Bill 755 can be found here: https://lis.virginia.gov/cgi-bin/legp604.exe?181+ful+CHAP0034+pdf.