Virginia Foreclosure Statistics 2022-2023
- 387 homes were foreclosed upon in February 2022 in VA.
- Five of the 50 counties in VA are the least vulnerable to foreclosure.
- Virginia’s foreclosure rate increased 11.51% from January to June 2022.
- In Virginia, 2.9% of mortgages are seriously underwater in Q1 2022.
- Lenders can foreclose on a mortgage in 60 days in Virginia.
- Greenbrier Mall in Chesapeake is in foreclosure for a $61 million loan balance.
- A Virginia lender can’t proceed with foreclosure until the borrower is 120 days delinquent.
- Virginia has the 25th highest foreclosure rate in the nation.
Richmond Virginia Foreclosure Facts 2022-2023
As of February 2022. there were 387 foreclosures in VA. That equals one for every 9,080 homes since there are 3,514,032 households in the commonwealth. This makes VA 32st in the nation for foreclosures. South Dakota had the least foreclosures, and New Jersey had the most.
ATTOM looks at the number of underwater mortgages, employment and wage statistics, and housing affordability to determine which counties have the least risk. A real estate data company found that 50 counties across the U.S. are at the least risk for foreclosures. Five of these counties are in VA, including Henrico, Arlington, Loudoun, Fairfax, and Albemarle counties. For people looking for a home in VA, these counties will give them the best chance of buying a home with a mortgage and maintaining the home they can afford based on the job opportunities available.
Virginia Beach has one of the top 10 shortest times to foreclosure in the U.S. at 242 days. The average time to foreclosure across the nation in the first quarter of 2022 is 917 days. Hawaii (has the longest time to foreclosure at 2,578 days, A foreclosure can have a devastating effect on a mortgage holder. In Virginia, there’s just a short time from when a homeowner is late until the family loses their home and sees their credit score drop. Credit scores eventually inch upward if the former homeowner maintains their other debts by paying them on time.
Richmond VA Foreclosure Statistics 2023-2022
Richmond VA homeowners saw foreclosure rates jump 11.51% from the beginning of 2022 to June 2022. Many of the homes may have gone into foreclosure in 2021 if not for the recently ending government program during the pandemic that provided homeowners relief. Much of the delinquency or default began before the government’s foreclosure moratorium. Now that many of the federal and state programs have ended, it’s only natural for foreclosures to rise.
In Virginia, 2.9% of mortgages are seriously underwater in Q1 2022. An underwater mortgage is when the mortgage holder owes more than the home is worth. It happens when property values drop or people miss mortgage payments. It’s difficult to refine an underwater mortgage, which is why many homeowners find their lender starting the foreclosure process. Foreclosure is also more likely for underwater mortgages if the borrower can no longer make their full monthly payment. California has the highest rate of underwater mortgages and one of the nation’s highest foreclosure rates.
In some cases, a lender can foreclose on a home in Virginia in 60 days. It would have to go through the non-judicial foreclosure process, and the borrower cannot stall the process or contest it. Judicial foreclosures typically take longer as they rely on the court’s calendar. In non-judicial mortgages, the borrower agrees to a clause in their mortgage where the lender has the power of sale if the borrower can’t make payments. In judicial foreclosures, the borrower still has 240 days from when their property is auctioned off to buy back their property by paying it off in full with six% interest.
Chesapeake VA Foreclosure Stats
Homeowners worry about the amount they need to get out of foreclosure. Some business owners owe far more than homeowners. The Greenbrier Mall in Chesapeake owners defaulted on a 61.6 million loan where the property was listed as collateral. Some stores closed because of the pandemic and the rise of online shopping, leaving owners with less revenue to make the loan payments. CW Capital is now in charge of the mall, and they hope to maximize its value before the eventual sale of the nearly 900,000-square-foot property. Since indoor malls are closing across the country, they may have to find a new use for the property.
In Virginia, and under federal law, no lender can start foreclosure unless the borrower is 120 days delinquent. Virginia law also requires lenders to accept loss mitigation applications from borrowers, review the application and inform the borrower of their decision. The lender can’t start the foreclosure process until the borrower has exhausted their appeals. Sometimes, the amount is not enough after a foreclosure sale to pay off the mortgage. The lender must file for a deficiency judgment to get the remaining balance owed. The foreclosure statutes in Virginia are subject to change, so borrowers are advised to check them or contact any attorney.
Virginia has the 25th highest foreclosure rate in the U.S. 620 homes are going into foreclosure in 2022 out of 3,618,247 total housing units. The communities with the highest foreclosure rates are Galax City, Martinsville City, Buena Vista City, Suffolk City and Portsmouth City. Galax is in the southwestern part of the Commonwealth of Virginia. Martinsville is in Southern Virginia. Buena Vista is in the Blue Ridge Mountains region of Virginia. Suffolk City is in the southeastern portion of the state like Chesterfield, as is Portsmouth City. Martinsville is the poorest area in the commonwealth with high levels of unemployment. Galax is the third poorest with high levels of unemployment due to plants closing.
Unfortunately, studies show that foreclosed homes still vacant for a long time breed crime as the lenders have little incentive to maintain the properties.