Understanding the foreclosure process in North Carolina is an important part of navigating your home foreclosure and should exhaust each option to avoiding foreclosure. Notice papers can be shocking and something you dont want to believe is happening. Although, the quicker you address your scenario and seek guidance, there are ways to avoid foreclosure in North Carolina.
Understanding & Avoiding the Foreclosure Process in North Carolina
What is foreclosure anyway?
Foreclosure is the legal process that lenders use to take back property securing a loan, generally after the borrower stops making payments. The lender or trustee is collecting the amount owed on a defaulted loan by selling or taking ownership (repossession) to the property securing the loan.
Foreclosure is no fun. But just know that it’s not the end of the world.
The better you know how foreclosure in NC works, the better you will be at avoiding foreclosure in North Carolina… This article arms you with the knowledge to make sure you navigate it well and come out the other end as well as possible.
The Basic Stages of A Foreclosure
There are a few stages that are important to any foreclosure process.
North Carolina is a power of sale jurisdiction; What this means is that the process can happen much quicker than judicial foreclosure although still typically doesn’t go to court until 3-6 months of missed payments have elapsed. Usually (but not always), a lender will send out many notices that you are in arrears – overdue or behind in your payment. The trustee or lender is required to give you a 10 day notice
- Your mortgage lender must file suit in the court system.
- You’ll get a letter from the court demanding payment.
- Assuming the loan is valid, you’ll have 30 days to bring payment to court to avoid foreclosure (and sometimes that can be extended).
- If you don’t pay during the payment period, a judgment will be entered and the lender can request the sale of your property – usually through an auction.
- Once the property is sold, the sheriff serves an eviction notice and forces you to immediately vacate the property.
3 Tips How to Avoid Foreclosure in North Carolina
Option 1 – Contact Your Bank
Contact your bank and ask what the reinstatement amount to get your loan up to date is. (We have paid reinstatements to help get more time to avoid foreclosure!) Your reinstatement amount will stop the foreclosure and can allow you to have more time to explore your options.
Contrary to many home owners belief, lenders do not want to foreclose! They want happy customers who pay their mortgages, so they will often be willing to work with you to figure out a deal that accustoms your needs.
Option 2- Sell Your House on The MLS
The average time on the market in North Carolina is 62 Days. If you have time and are considering selling your house, the best way to get the max dollar amount would be to hire an agent. This option is best if you do have time to sell your house (At least 3 months) and do not have equity or purchased in the last few years. Selling your house on the MLS with a realtor is one of the best ways to get your property exposed.
Option 3 – Sell Your House Quick & Easy at a Fair Price
Cash home buying companies like Simply Sold Property can help solve your problems and stop foreclosure quick. If you are in the notice of default or notice of sale stages, call us to see how we can craft a solution to help you avoid foreclosure in North Carolina.
We have helped home owners avoid foreclosure in various ways such as paying their reinstatements to get more time, or closing in as quick as 10 days! We can buy houses fast so you can sell your house before your property goes to auction so we can help you avoid foreclosure and put money in your pockets for your property. We can work with you and your bank to pay off the reinstatement amount so you can be avoiding foreclosure in North Carolina.
We buy houses in roughly 14 days and if you do not have much time before the bank is auctioning off your property, we are the fastest option to get cash in your hands quick and avoid foreclosure. We can work with you to avoid foreclosure in North Carolina by getting you a fair cash offer for your house so you do not have to worry or stress about your property.
What Happens After A Foreclosure Auction?
After a foreclosure is complete, the loan amount is paid off with the sale proceeds.
Sometimes, if the sale of the property at auction isn’t enough to pay off the loan, a deficiency judgment can be issued against the borrower.
A deficiency judgment is where the bank gets a judgment against you, the borrower, for the remaining funds owed to the bank on the loan amount after the foreclosure sale.
Some states limit the amount owed in a deficiency judgment to the fair value of the property at the time of sale, while other states will allow the full loan amount to be assessed against the borrower.
Here’s a great resource that lists the state by state deficiency judgment laws, since every state is different.
Generally, it’s best to avoid a foreclosure auction. Instead, call up the bank, or work with a reputable real estate firm like us at Simply Sold Property to help you negotiate discounts off the amount owed to avoid having to carry out a foreclosure.
Experienced investors can help you by negotiating directly with banks to lower the amount you owe in a sale – or even eliminate it, even if your home is worth less than you owe.
If you need to sell a property near Greensboro, we can help you.
Avoiding Foreclosure in North Carolina – Simply Sold Property
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Another Foreclosure Resource For Greensboro NC HomeOwners: