HB 184 — Foreclosure procedures; subordinate mortgage, affidavit required.

RECONVENED SESSION REENROLLED VIRGINIA ACTS OF ASSEMBLY --–– 2024 RECONVENED SESSION CHAPTER 803R An Act to amend and reenact § 55.1-321 of the Code of Virginia, relating to foreclosure procedures;

E N [H 184] Approved AprilR 17,O 20241. Be it enacted by the General Assembly of Virginia:

1.

L A.

In addition to the advertisement required by § 55.1-322, the trustee or the party secured shall give written notice of the time, date, and place of any proposed sale in execution of a deed of trust,trusE, and such notice shall include either (i) the instrument number or deed book and page numbers of the instrument of appointment filed pursuant to § 55.1-320, or (ii) a copy of the executed and notarized appointmentappoiDtment of hissubstitute lasttrustee knownby addresspersonal asdelivery suchor by mail to (a) the present owner andof addressthe appearproperty to be sold at subordinate lienholder who holds a note against the property secured by a deed of trust recorded at least 75 days, in the recordscase of a deed of trust conveying owner-occupied residential real estate, or 30 days, in the partycase secured;of all other deeds of trust, prior to the proposed sale and whose address is recorded with the deed of trust;

(b)(c) anyldany atassignee subordinateof lienholdersuch who holds a note against the property secured by a deed of trusttrust, provided that the assignment and address of assignee are likewise recorded at least 75 days, in the case of a deed of trust conveying owner-occupied residential real estate, or 30 days, in the case of all other deeds of trust, priorprHor to the proposed salesale; and whose address is recorded with the deed of trust;

(c)(d) any assigneecondominium ofunit suchowners' aassociation notethat securedhas byfiled a deedlien ofpursuant trust,to provided1 thatany theproprietary assignmentlessees' andassociation addressthat ofhas assigneefiled are likewise recorded at least 75 days, in the case of a deedlien ofpursuant trust conveying owner-occupied residential real estate, or 30 days, in the case of all other deeds of trust, prior to the§ proposed55.1-2148. sale;

(d)Written anynotice condominiumshall unitbe owners'given associationpursuant thatto hasclauses filed(d), a(e), and (f) only if the lien pursuantis recorded at least 75 days, in tRe case of a deed of trust conveying owner-occupied residential real estate, or 30 days, in the case of all other deeds of trust, prior to §the 55.1-1966;proposed sale.

(e) any property owners' association that has filed a lien pursuant to § 55.1-1833;

and (f) any proprietary lessees' association that has filed a lien pursuant to § 55.1-2148.

Written notice shall be given pursuant to clauses (d), (e), and (f) only if the lien is recorded at least 75 days, in the case of a deed of trust conveying owner-occupied residential real estate, or 30 days, in the case of all other deeds of trust, prior to the proposed sale.

(2) 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;

Mailing of a copy of the advertisement or a notice containing the same information to the owner by certified or registered mail no less than 60 days prior to such sale, in the case of a deed of trust conveying owner-occupied residential real estate, or 14 days prior to such sale, in the case of all other deeds of trust, and to lienholders, the property owners' association or proprietary lessees' association, their assigns, and the condominium unit owners' association, at the address noted in the memorandum of lien, by ordinary mail no less than 60 days prior to such sale, in the case of a deed of trust conveying owner-occupied residential real estate, or 14 days prior to such sale, in the case of all other deeds of trust, shall be a sufficient compliance with the requirement of notice.

A1.was, at the time it was recorded, subordinate to another security interest encumbering the same realt (i) property and (ii) has not subsequently been elevated to a first priority lien by a recorded voluntary subordination agreement, such subordinate mortgage lienholder shall submit to the trustee an affidavit affirming whether monthly statements were sent to the property owner for each period that any interest, fees, or other charges were assessed.

IfNo thesuch proposedinterest, salefees, isor initiatedother duecharges toshall abe defaultassessed inor paymentcharged underfor aany securityperiod instrumentduring thatwhich (i)periodic was,statements atwere thenot timesent itunless was recorded, subordinate to another security interest encumbering the same real property and (ii) has not subsequently been elevated to a first priority lien by a recorded voluntary subordination agreement, such subordinate mortgage lienholder shallidentifies submita tospecific theexemption trusteepursuant an affidavit affirming whether monthly statements were sent to theapplicable propertylaw owner for eachwhich periodsuch thatsubordinate anyenumerated interest,in fees,the oraffidavit. other charges were assessed.

NoSuch suchaffidavit interest, fees, or other charges shall bealso assessedinclude oran chargeditemized forlist anyof period during which periodic statements were not sent unless the subordinatecurrent mortgageamount lienholderowed, identifiesincluding aany specificperiods exemptionin pursuant to applicable law for which suchinterest, subordinatefees, mortgageand lienholderother wascharges notwere requiredwaived tobecause sendno suchmonthly specificof 2 statements forwere anysent periodduring ofsuch timeperiod. enumerated in the affidavit.

SuchThe affidavitsubordinate shallmortgage alsolienholder includeshall anprovide itemizeda listcopy of such affidavit to the currentperson amountrequired owed,to includingpay anythe periodsinstrument inwith whichwritten interest,notice fees,that anda otherrequest chargesfor weresale waivedshall becausebe nomade monthlyof statementsthe weretrustee sentupon duringthe expiration of 60 days from the day of mailing such period.notice.

The subordinate mortgage lienholder shall provide a copy of such affidavit to the person required to pay the instrument with written notice that a request for sale of 2 shall be made of the trustee upon the expiration of 60 days from the day of mailing such notice.