The Virginia legislature recently passed bills amending its laws related to foreclosure.  The bills are effective July 1, 2018.

Virginia House Bill 311

If, on the date of a foreclosure sale of a single-family residential dwelling unit, the former owner remains in possession of the dwelling unit, such former owner becomes a tenant at sufferance.  Such tenancy may be terminated by a written termination notice from the successor owner given to such tenant at least three days prior to the effective date of termination. Upon the expiration of the three-day period, the successor owner may file an unlawful detainer.  The tenant will be responsible for payment of fair market rental from the date of the foreclosure until the date the tenant vacates the dwelling unit, as well as damages, and for payment of reasonable attorney fees and court costs.

No judgment in an action bars any action of trespass, ejectment, or unlawful detainer between the same parties, nor will any such judgment or verdict be conclusive, in any such future action, of the facts.

Virginia House Bill 755 and Senate Bill 422

The trustee or the party secured must give written notice of the time, date and place of any proposed foreclosure sale in execution of a deed of trust.  If the secured party has received notification that the owner of the property to be sold is deceased, the notices must be sent 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.

The trustee of a deed of trust for property that is sold after the death of the owner must include any remaining subsequent debts and obligations secured by the deed of trust and any liens of record inferior to the deed of trust under which the sale is made, with lawful interest, in the list of debts to be paid off using any surplus from the sale prior to paying the remainder of the surplus to the decedent's personal representative.