Mortgage foreclosures; notices and reinstatement right. (HB1665)

Introduced By

Sen. Kenneth Alexander (D-Norfolk)


Passed Committee
Passed House
Passed Senate
Signed by Governor
Became Law


Mortgage foreclosures; notices and reinstatement right.  Requires certain institutional lenders that are the beneficiary of a first priority deed of trust securing a loan on residential real property that is the primary residence of the grantor, within two days after characterizing the loan as being in default, accelerating the balance due on the loan, or otherwise instituting collection proceedings on the loan as a result of the grantor's failure to make any payment due on the loan, to send written notice to the grantor informing the grantor (i) that the beneficiary has taken such action with respect to the loan and (ii) of any programs or options that the beneficiary provides, conducts, or has knowledge of that may permit the grantor to avoid foreclosure of the deed of trust and a telephone number or Internet address through which the grantor may find contact information for counseling agencies approved by the U.S. Department of Housing and Urban Development. The measure prohibits the beneficiary of such a loan that is in default status from unreasonably refusing to provide information regarding the status of the loan or to reply to inquiries from the grantor regarding the status of the loan or programs or options that may permit the grantor to avoid foreclosure. The measure also gives the grantor a new right, exercisable at any time up to the date of the sale of the property, to cure the default, de-accelerate, and reinstate the loan by paying all sums that would have been due in the absence of default and performing any other obligation that the grantor would have been bound to perform in the absence of the default or acceleration. The grantor may exercise the right to cure a default as to a particular loan and reinstate that mortgage once every 18 months. Read the Bill »


Bill Has Failed


01/10/2011Prefiled and ordered printed; offered 01/12/11 11100835D
01/10/2011Referred to Committee for Courts of Justice
01/14/2011Assigned Courts sub: #2 Civil
01/24/2011Subcommittee recommends passing by with letter
02/08/2011Left in Courts of Justice


Jay S., tracking this bill in Photosynthesis, notes:


Virginia Housing Coalition, tracking this bill in Photosynthesis, notes:

The Virginia Housing Coalition is lending its support to this bill.