BAYVIEW LOAN SERVICING, LLC v. JANET SIMMONS, 275 Va. 114

Summary

The holder alleged it sent the mortgagor a letter by first-class mail notifying her she was in arrears and it would foreclose if no cure was made in 30 days. She denied receiving it. Under Va. Code Ann. § 55-59.1(A), the trustee under the deed of trust sent her a certified letter stating the debt had been accelerated and the date of the foreclosure sale; it was not claimed. The parcel was sold at foreclosure for less than half of its fair market value. The deed of trust required the mortgagee to deliver or send the mortgagor by certified mail a pre-acceleration notice of breach. The trial court held that as the mortgagor did not receive this notice or have actual knowledge of it, the holder breached its duty under the deed of trust; therefore, its right to accelerate and foreclose never matured. The holder argued its duty to send notice of its intent to accelerate was superseded by § 55-59.1(A). The high court disagreed. While a notice of a foreclosure sale under § 55-59.1(A) could act...