Avoid Foreclosure In Henderson, Haywood, and Buncombe Counties
Were you excited to buy a home, but paying the mortgage isn’t going smoothly? Do you have unexpected costs or financial hardship? If you don’t pay in a timely fashion, you may face foreclosure.
Foreclosure is when the bank or your lender takes possession of your home after nonpayment of the mortgage. In North Carolina, you do have options if you’re struggling to pay your mortgage to avoid foreclosure. Before forfeiting all rights to the property, take action and seek assistance. You may be able to obtain funds to repay your debt, sell the property quickly, or work with your lender to set up a different payment plan.
If foreclosure seems to be in the cards for you, don’t lose hope. The thought of losing your home is definitely stressful, but there are ways out of foreclosure. Yes, you can even avoid ruining your credit score and keep that foreclosure off your record.
Our family team has experience working through the foreclosure procedure in Western North Carolina, and can help you decide what’s best for your unique situation. Read on for more details and don’t hesitate to call us with questions.
Where to begin?
- Educate yourself – learn about the foreclosure process and some of the solutions to get out of foreclosure.
- Find helpful resources in your area – from legal to real estate and beyond.
- Take action! No one can save you but yourself.
The Foreclosure Process
Pre-Foreclosure is the preliminary stage before the lender makes legal filings. This is the optimal time to stop a foreclosure to avoid negatively affecting your credit score. You can speak with your lender, list your home for sale, or find a private investor willing to purchase or take over your existing loan.
We will look at the legal process in North Carolina for foreclosure on a property considered a home, where you reside.
At least 45 days before starting the official foreclosure process, your loan lender or servicer must send a letter notifying all parties of the process.
During this time, a trustee will be named and a Recording of Substitution of Trustee is filed. The trustee is a neutral third party that mediates between you and the lender and signs all necessary documents. They are often a lawyer or a legal LLC company, which is helpful as they have a deep knowledge of the process. You may choose to change the trustee. The clerk of court will pay attention to the date this substitution is filed, as it must be before the notice of hearing.
You’ll receive a 30-day letter, signifying that in about a month, an official hearing will be scheduled. This letter will include:
- Charges you must pay in order to make the loan current. This includes the past due amount, interest charges, and late fees.
- The mortgage lender or servicer’s contact information. They may also send contact information for an agent who is authorized to work with the lender on your behalf.
- The letter may include information about an HUD-approved housing counseling agency.
In North Carolina, the actual foreclosure process begins 45 days after that first notice, when the trustee can file a Notice of Foreclosure Hearing. This notice is served to all parties involved and sets a time and date for the hearing in court.
During this time, you can make an effort to work with your lender or perhaps find another source of income to pay off what you owe. Don’t give up! You can apply for loans and look into selling the property or refinancing your loan. Keep records of your efforts, as you can show them to the clerk and ask for a continuance to delay procedure.
The trustee will alert you with a 10-day notice served by the sheriff or certified mail of the foreclosure hearing. If this method fails, they may serve with a posting on the property, which must give 20-day notice of the hearing. If you do head to the hearing, bring all documents and receipts possible.
At the hearing, the clerk of court will consider issues like whether your debt is valid and the foreclosing lender is the holder of the debt, if you have actually defaulted on your payments, whether the deed of trust allows foreclosure is allowed, and whether the lender gave proper notice. The clerk will then decide to postpone the foreclosure and allow more time for you to pay or to allow your lender to proceed with the sale.
Once the home has been auctioned off, the previous tenants are required to move out unless a rental agreement has been made between the new owners and the previous owners.
There are even more details and options in this scenario – this is just an overview. The process is very complex and depends on what kind of loan or mortgage you have and the type of property, so contact us.
You can avoid the foreclosure headache by working with your lenders before they send the 45-day letter.
Prevent Foreclosure · Communicate With Your Lender!
If you’re not able to make your mortgage payment, you probably know before the due date. You’ve had a life event that surprised you and hurt you financially. Perhaps you are getting divorced, a loved one has died, or you’re suddenly unemployed. Life is a roller coaster – even issues like needing to fix your car or pay a medical bill can plunge your finances into a downturn.
When these things happen, this is the time to swallow your pride and call your lender. Generally, lenders will wait 60 days from the date of the missed payment before filing a Notice of Default. During this time, you should try to work with them to make up the payments or find another resolution. They may offer the following options to prevent starting the foreclosure process:
Forbearance – Lenders may give you extra time, postpone your payment, and help create a payment plan that you can afford. However, with most forbearance plans, you will continue to accrue interest, so pay close attention to that.
Repayment Plan – This plan will add a small amount to your monthly payments until you’ve paid off the amount of the missed payment.
Deferment/Loan Modification – Your lender might look at making changes to the loan conditions. For example, they may freeze your interest rate for an adjustable mortgage or extend the length of the loan.
Partial Claim– There are some government loans that you can use to pay back missed mortgage payments if you meet the lending criteria.
If you’re not comfortable speaking to the lenders alone, work with a qualified and experienced team that knows how to work with the banks to help homeowners out of this situation.
Stop a Foreclosure: 3+ Ways
If your lender won’t work with you, there are other options to stop foreclosure proceedings. However, you must act quickly and really do some research to know which option is best for your situation.
Sell Your Home –Talk to an experienced real estate agent familiar with home prices in your area to get an accurate market analysis. Listing with a discount broker might sound like a reasonable way to save money but you should interview different agents and find one with lots of marketing and sales experience. Keep in mind that a discount broker won’t save you money if they can’t sell the home before the foreclosure process ends.
Will Your Lender Consider a Short Sale? – If your home isn’t worth as much as you owe, you might be right for a short sale. In this situation, a buyer negotiates with the lender to see if they will accept less than the full amount you owe on the loan. There are specific criteria that you need to meet to sell through a short sale. Consult a professional and do additional research before jumping for a short sale opportunity. Remember, not all homes qualify.
Sign a Deed-in-Lieu of Foreclosure – Basically, you would be signing the deed back to the lender in this situation, closing out the loan and stopping the foreclosure process. This also affects your credit the same as foreclosure. In this case, you may be able to negotiate to stay in the home or rent the home for a lower price until it’s sold.
If the lender won’t work with you and you have to leave your home, your options are limited. However, you may still be able to save your credit rating, save money, and get out of this situation without too much headache.
We can evaluate your specific situation for you to lay it out in clear to understand terms exactly which options are realistic and exactly what each option can do for you and your family. Just get a hold of us and tell us a bit about where you are in the process. From there, we’ll get back to you within 24 hours with a clear explanation of what will help you reach your goals in your specific situation.
Helpful Resources
If you’re facing foreclosure and live in Haywood, Buncombe, or Henderson County in North Carolina, don’t lose hope!
In addition to your lender, look for local resources in WNC. You may want to find:
- A local realtor who knows your area and market details. Be wary, as they may convince you to sell your home unnecessarily.
- A local real estate attorney can help you wade through the laws and requirements.
- A local, honest real estate foreclosure solutions provider; I Buy Homes LLC will make an offer, just fill out the quick form below. We can look at all your options without bias and without fees.
Our local family are market experts in Haywood, Buncombe and Henderson counties. We’ve worked with countless homeowners in foreclosure situations. Our goal is to help you protect your credit, or sell your property quickly with no fees, finding all-cash offers: Fill out the quick form at the bottom.
Contact us today to get back to living your life soon – we’ll do all the legwork.
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Right now, our family team can help you with any house in Buncombe County, Haywood County, or Henderson County North Carolina. Whether you are dealing with evictions, probate, foreclosure, or repairs, our team has a solution for you. Give us a call today to learn more about what we can do for you!