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Be it enacted by the General Assembly of Virginia:
§ 55-58.4. Exemptions from article.
The provisions of this article relating to the sale of property secured by a deed of trust where such deed of trust authorizes the trustee, or a substitute trustee, to make sale of such property shall not be applicable to deeds of trust entered into on or after July 1, 2011.
§ 55-61. Judicial foreclosure; sales under deeds of trust which contain no maturity date or provision authorizing sale.
WhenA. For deeds of trust entered into before July 1,
2011, when any property, real or personal, is conveyed by
deed of trust, whether heretofore or hereafter made, to a trustee, to secure
the payment of a debt, money, notes, bonds, stocks or other evidences of debt
and there is no date fixed for the maturity thereof and such deed of trust
contains no provision authorizing the trustee to make sale of such property, or
any part thereof, and the reinvestment of the proceeds of sale in other
property subject to the terms of such deed of trust, the circuit and corporation courts, or
such court having jurisdiction of the subject matter, upon a bill filed by any
one or more of the lien debtors, in which bill all persons interested in such
lien and all holders of the evidences of debt secured by the deed of trust
thereon, and all other necessary or proper parties, except the plaintiffs,
shall be made defendants, may decree a sale of such property, or any part
thereof, and may invest the proceeds of sale under decree of court subject to
the terms of the deed of trust; provided, that the bill of complaint shall set
forth facts which will justify the sale of the property, to be verified by the
affidavit of at least one of the plaintiffs; provided, further, that no decree
shall be made authorizing such sale unless it shall be shown to the
satisfaction of the court that the interests of the lien debtor or debtors will
be promoted and the interests of no person or persons holding the evidences of
debt secured by the deed of trust will be violated thereby; provided, further,
that the plaintiff or the party for whose benefit the suit is brought shall
bear the cost.
B. A sale of property in execution of a deed of trust entered into on or after July 1, 2011, may only be held after the court conducts a foreclosure proceeding and enters a decree ordering such sale. Such foreclosure proceeding shall be conducted in accordance with the procedures set forth in subsection A.