Can the lender come after you for the rest? Deficiency judgments in Virginia

Deficiency rules in Virginia, point by point

• No anti-deficiency statute found

  After the trustee's sale

  Virginia's deed of trust statutes cover notice, advertisement and the trustee's duties, but we did not find a section that bars or limits a deficiency on a home loan. If the sale brings less than you owe, the lender can sue you for the rest on the note.

  Va. Code §§ 55.1-320 to 55.1-324

• Time limits on a lawsuit

  Generally 5 or 6 years

  Virginia sets a six-year limit for suits on a promissory note, counted from the due date or the date the loan was accelerated, and a five-year limit for other signed written contracts. Which one applies to your case, and when it started, is a question for a lawyer.

  Va. Code §§ 8.3A-118(a), 8.01-246(2)

• No fair market value hearing in the statute

  In any deficiency suit

  We did not find a Virginia statute that gives you a credit for the home's fair market value, as some states do. The trustee must account for the sale, so ask for that accounting and check the sale price, costs and how the money was applied.

  Va. Code § 55.1-324

• Short sale or deed in lieu

  Before you sign

  We did not find a Virginia statute on deficiencies after a short sale or deed in lieu, so the written agreement controls. Ask the lender, and any second mortgage lender, to state in writing that the remaining balance is waived.

• How long a judgment lasts

  10 years, can be extended

  A judgment dated on or after July 1, 2021 can be enforced for 10 years. The creditor can extend it by recording a certificate before it runs out, for up to two 10-year extensions.

  Va. Code § 8.01-251(A), (B)

• Wage garnishment is limited

  After a judgment

  A creditor with a judgment can garnish wages, but for most debts no more than the lesser of 25 percent of your disposable earnings or the amount above 40 times the higher of the federal or Virginia minimum hourly wage each week.

  Va. Code § 34-29(A)

• If you get a deficiency letter or are sued

  Act by the date on the court papers

  Do not ignore a warrant in debt or complaint, and do not agree to a payment plan before you check the numbers. Contact Virginia Law Help or the Virginia Lawyer Referral Service to ask about defenses and time limits.

The short answer in Virginia

Common questions in Virginia