Real estate fun fact: You actually don’t have a mortgage

The term “mortgage” is one you will often hear thrown around a lot when it comes to monthly bills or in conversations about debt. The reality is that you actually don’t have a mortgage in the commonwealth of Virginia.

Virginia uses a form of IOU called a “deed of trust.” The biggest difference between a deed of trust and a mortgage is that a deed of trust shortens the amount of time that a foreclosure takes. With a mortgage, there is a judicial timeline that has to take place for a foreclosure; meaning that the eviction process has to go through the court system.

With a deed of trust, after you have missed a specified amount of monthly payments (typically 120 days late) the foreclosure process can begin without going through the court system. Case in point, a regular foreclosure process with a mortgage would take about 60 days whereas a deed of trust could take as little as 37. With that being said, surprisingly, Virginia is not even in the top 10 when it comes to US states with the most foreclosures. I hope you found this fun fact helpful! Stay warm everyone!

Mitchell Smith | REALTOR
NextHome Realty Select | Licensed in Virginia
210 E. Main St, Front Royal, VA 22630
Phone: 540.622.3668
Email: mitchell@nexthomerealtyselect.com
Website: www.NextHomeRealtySelect.com