What Happens at a Virginia Trustee Sale: Step by Step

A Virginia trustee sale is the public auction that ends a foreclosure: after mailing the owner at least 14 days' notice and advertising the sale in a newspaper — usually once a week for four weeks — the trustee named in the deed of trust auctions the property, typically on the courthouse steps, to the highest bidder, who receives a trustee's deed. No lawsuit is filed and no judge approves the sale. Here's exactly what happens before, during, and after, under Virginia Code §§ 55.1-320 through 55.1-322, and what it means for a homeowner watching the date approach.

Why Virginia has trustee sales instead of court foreclosures

When you borrowed to buy your house, you signed two documents: a note (the promise to repay) and a deed of trust (the security). The deed of trust conveys legal title to a trustee to hold for the lender's benefit, and it contains a power of sale: if you default, the trustee may sell the property and apply the proceeds to the debt. Because the power of sale is in the contract, the lender doesn't need a court order to use it. That's non-judicial foreclosure, and it's why Virginia's process is measured in weeks rather than years.

Before the sale, the lender typically records a deed of appointment of substitute trustee, replacing the original trustee with a law firm that handles foreclosures. That firm runs everything from here.

Before the sale: notice and advertisement

Virginia requires two things before the auction can take place.

1. Written notice to the owner — Va. Code § 55.1-321. The trustee must mail notice of the time, date, and place of the sale to the present owner at least 14 days before the sale, to the property address and any other address the owner has provided. Certain lienholders also receive notice. The letter usually includes the reinstatement or payoff figure and the trustee's contact information.

2. Advertisement — Va. Code § 55.1-322. The sale must be advertised in a newspaper of general circulation in the city or county where the property sits. The schedule is:

• Whatever the deed of trust specifies, if it specifies one — subject to statutory minimums.
• If it doesn't, once a week for four successive weeks.
• For property in a city, or in a county immediately contiguous to a city (which covers Richmond, Henrico, Chesterfield, and Hanover), an alternative of five different days, which may be consecutive.

The sale must be held no sooner than 8 days after the first ad and no later than 30 days after the last. The advertisement describes the property, states the date, time, and place of sale, the deposit required (commonly 10% of the bid, in certified funds), and the terms — "as-is, where-is, without warranty," subject to senior liens, with settlement due within a set number of days.

In the Richmond metro these ads appear in the Richmond Times-Dispatch legal notices, and sometimes in county weeklies. Investors read them daily.

The day of the sale

Trustee sales in the Richmond area are held at the Circuit Court building for the jurisdiction — Richmond's John Marshall Courts Building, Henrico's courts building on Parham Road, the Hanover Courthouse complex, or Chesterfield's courthouse on Iron Bridge Road — usually on the front steps or in a designated lobby area, at the time in the ad. There's no gavel and no auction house; a representative from the trustee's law firm reads the notice, states the terms, and takes bids.

The lender's credit bid. The lender is almost always the first bidder. It "credit bids" — offers an amount up to what it's owed without having to bring cash. The opening credit bid is often the full debt plus costs, though lenders sometimes open lower to draw competition.

Third-party bidders. Investors bid cash. To be worthwhile for them, the house must be worth meaningfully more than the debt, because they're buying sight-unseen (usually exterior only), as-is, subject to any senior liens, and they have to evict the occupants themselves. If there's real equity, competitive bidding follows. If the debt exceeds the value, no one outbids the lender and the property goes back to it as REO (real-estate-owned).

The high bidder pays the deposit on the spot and signs a memorandum of sale. The trustee typically requires full settlement within 15–30 days. When the buyer pays, the trustee delivers a trustee's deed, which is recorded with the Circuit Court clerk and transfers title.

After the sale: proceeds, surplus, deficiency

The trustee applies the sale proceeds in a fixed order: the costs of sale and the trustee's commission, then the debt secured by the deed of trust, then junior liens in order of priority, and finally any surplus to the former owner. The trustee must account for the proceeds and deliver any surplus to the person entitled to it or pay it into court.

If the sale brings less than the debt, the lender can pursue the borrower for the deficiency — Virginia allows deficiency judgments after a trustee sale. This is one of the strongest reasons to avoid a trustee sale when possible: a pre-sale sale that pays the loan in full, or a short sale with a written deficiency waiver, closes the door on that liability.

No right of redemption

Virginia has no statutory right of redemption after a trustee sale. Once the trustee's deed is delivered, the former owner cannot get the house back by paying the debt. The only "redemption" in Virginia is the equitable right to pay off or reinstate before the sale, which ends when the property is struck off. We cover this in Virginia's right of redemption after foreclosure.

If you're still in the house

The buyer at a trustee sale doesn't get the keys with the deed. If the former owner or a tenant is living there, the new owner files an unlawful detainer in the General District Court, and after a hearing the sheriff carries out the eviction — usually a matter of weeks. Some buyers offer "cash for keys" to speed this along. A tenant with a lease has protections under federal law that can extend their time.

What a homeowner can do before the hammer falls

Every option ends at the moment the sale is called, so timing is everything:

1. Reinstate. Pay the arrears, fees, and trustee's costs before the sale. Nearly every Virginia deed of trust allows it.
2. Pay off the loan — usually by selling. A cash buyer can close within weeks, pay the lender at settlement, and return the equity to you rather than leaving it to auction bidders.
3. File bankruptcy. A Chapter 13 (or Chapter 7) petition filed before the sale triggers an automatic stay that stops it instantly.
4. Complete a loss-mitigation application. A complete application generally requires the servicer to pause the sale while it's reviewed.
5. Ask the trustee to postpone. With a signed contract and proof of funds from a buyer, trustees frequently continue the sale to a later date — not required, but common.

If you're facing a sale date in Richmond, Henrico, Hanover, or Chesterfield, our foreclosure help page lays out each of these in detail, and you can call or text (804) 331-8443 to talk through your dates today. We buy houses before the trustee sale, pay the lender at closing, and make sure whatever equity you have comes to you instead of an auction bidder.