My Charlotte Area House is Going through Foreclosure, What Are My Options?
For whatever reason you haven’t been making your mortgage payment (or at least your lender believes you haven’t made your mortgage payments) and now your lender is going through the process of foreclosing on your house. The process of figuring out how to avoid a foreclosure on your credit report involves you sitting down, being realistic and determining what is within your control to fix so you can put your family and yourself in the BEST possible position moving forward. You should also consider the things that may not be in your control and minimize the damages that the bank may cause. As a lawyer and a real estate professional, I have seen too many people try to work with the bank, only to realize that the bank isn’t on their side and they end up having their house foreclosed on and they walk away with NOTHING and BAD CREDIT.
Questions to Ask Yourself When Experiencing Foreclosure in Charlotte
Where will you and your family live?
We work closing with Charlotte area foreclosure attorneys who can try to stop foreclosure immediately, so you can catch up on your payments.
However, if the mortgage company has stopped taking payments, the foreclosure process has already begun. Don’t wait and lose your Charlotte area home. For a free consultation and evaluation on how we can SELL your House Fast and AVOID foreclosure Contact us here or fill out the form at the bottom of the page.
What is Foreclosure?
Foreclosure involves a lawsuit in which a mortgage company, bank, or other lienholder seeks to take your property to satisfy a debt. The lender can actually take ownership of the property or have the property sold to pay off the debt. As a result of the foreclosure, you the owner lose whatever rights you had in the property. In other words, foreclosure is a process in which your home becomes the property of the bank or lender.
If you, as a homeowner fail to pay your mortgage loan when its due every month, the lender that holds the mortgage on your house can bring a foreclosure against you. A foreclosure can also occur if you borrow money from a bank using your house as collateral and fail to pay. Foreclosure lawyers can help aid you in these types of situations, but its best to contact them early in the process because the longer you wait the more difficult it is to revolve the situation and keep you in the house.
In a foreclosure, you and your lender are both in a challenging situation and need a positive outcome: sometimes that means keeping your house, other times that means making sure your credit it not negatively impacted so you can be able to move forward in life. Foreclosure proceedings usually start with a formal demand for payment, usually in the form of a letter from your lender. This letter is referred to as a Notice of Default (NOD). Contact us and we can direct you to a local Charlotte foreclosure attorney for more clarification if needed.
What Are My Options to Avoid Foreclosure?
A vitally important step you must take when facing foreclosure is to maintain communication with your lender. In the end most lenders are not interested in foreclosing and then owning your property, they simply want their payments on the monies they loaned you.
In many situations, good communication can lead to an agreement such as loan modification or forbearance.
Loan Modification can refer to a wide variety of changes to your loan. You can ask for a loan extension, a re-amortization of your remaining balance, or a reduction in interest payments. A loan modification is really any change in the terms of the note that are agreed upon and legal. This is the most commonly used in trying to avoid a foreclosure situation because you’ll be able to keep your property and keep a foreclosure off your credit report.
Forbearance. This means you can get your payments reduced or put on pause for a period of time until you are able to find a solution for your financial situation. Forbearance may be able to buy you time to save your home, it often comes with additional attached payments, which can add more pressure to a volatile situation.
Many people think filing for Bankruptcy is the right move in a foreclosure situation. This can legally stop the foreclosure process but bankruptcy isn’t the ideal route to take. In most cases bankruptcy is a band-aid that only buys you some additional time and in the process you are guaranteeing that your credit will be destroyed for at least the next seven (7) years
More times than not, in the end you will still end up losing your home (after a year or two) and dealing with bankruptcy on your credit record. The worst part is you could still end up owing money after your house is sold if the sale doesn’t cover all the costs and the lender could come after you in a deficiency judgment.
Your best option may be to sell your Charlotte area home while there is still time and before you are too deep in the foreclosure process. You can sell your home the traditional with the help of a real estate agent, or sell it to an Investor for cash in a short amount of time. Selling your home the traditional way works best if your house isn’t in need of any major repairs, homes in certain locations in Charlotte are selling quickly. If your house is in good condition you may be able to recover some of your equity, but if not, the time and money required to sell your home by listing it with a real estate agent may not be worth the time, money, effort and stress. When selling to an investor you typically aren’t responsible for making any repairs on the property, you can sell for cash (no waiting for a retail buyer to qualify for a loan) and usually close within two weeks. This is ideal for someone who needs to move quickly to prevent a foreclosure sale.
Whether You Want to Sell Your House to An Investor or With a Real Estate Agent you Should Contact US because we are your solution.
Commonly Asked Questions When Facing Foreclosure in Charlotte NC
Q: What does it mean to be in foreclosure?
A: According to dictionary.com, to foreclose is to deprive (you) the mortgagor of the right to redeem mortgaged property, when payments have not been made. When you have missed two months worth of payments you have defaulted on your loan, but you are not yet in foreclosure. The
foreclosure proceedings will not initiate until the mortgage lender or bank submits paper work to a prosecuting attorney.
Q: What are my options?
A: Once the mortgage lender sends letters informing you of the Foreclosure it is important that you keep your head up; find a way to fix things. Immediately start considering your options of another loan, refinancing, etc. On the other hand, if you know you are in over your head then selling is
always an option. To keep from falling deep into the foreclosure process it is really important to weigh out your options, looking at your finances and what you can afford in
Q: Who do I turn to?
A: You can talk to your mortgage lender about your options with payments adjustments, another loan, etc. If you decide to sell the house, contact non practicing attorney and realtor Sir Ashley Harrison by clicking here If you decide to sell your home make sure you are getting help from credible sources and of course don’t ever sign anything before reading it.
Q: If I am in foreclosure, how much time do I have until I have to leave the house?
A: Laws vary from state to state; in states like North Carolina, a Charlotte
foreclosure house for sale is advertised to the public when an auction date is scheduled. However in other states, the house is not publicly advertised until the 130th day of the foreclosure process. If you look online or go to the library and look up your state legislature, you will find a slue of
detailed statutes. Do some research so you know exactly what timeline you are dealing with, but the bottom line is to act as quickly and wisely as possible.
Q: Does the lender have the right to repossess my house, even though I have been paying for it all this time?
A: Unfortunately, yes. Even though you only missed those few payments and had paid so many others, the mortgage documents or deed of trust (depending if you live in a judicial or
non-judicial state) gives the lender the right to foreclose and repossess the property after you have defaulted on payments for a certain length of time.
Q: What is refinancing and how can it help me out of foreclosure?
A: By refinancing you are essentially taking another loan. The new loan is based off a new appraisal of your property. One benefits of refinancing is that you can sometimes get a
lower interest rate, in turn, decreasing your monthly mortgage rate. However, refinancing is not for everyone. It can also put you at higher risk for foreclosure depending on a number of factors. Really do some research and talk to someone who can advise you well on this option.
Q: If I lose my house in foreclosure are my chances of buying again lessened?
A: If you apply for a loan on another house your past foreclosure will show in your credit history. This does not mean you will not qualify for a loan; however you are less likely to receive, for instance, a low down payment loan. It is very important to stay informed and knowledgeable in how
to stop the Foreclosure before it happens. There are people who are willing to take the time and help.
About Sir Ashley & Sir Ashley Real Estate:
Sir Ashley is a trained attorney (although not practicing presently), investor and is a licensed real estate agent & realtor. Sir Ashley Harrison can be reached at Sir@SirAshley.com or by phone at 704-775-1236. If you’re thinking of selling or buying a house in the Charlotte area, we would love to share our marketing knowledge and expertise.
Sir Ashley services the following Greater Charlotte area: Charlotte, Huntersville, Lake Norman, Davidson, Cornelius, Statesville, Concord, Kannapolis, Salisbury, Gastonia, Mount Holly, Denver, Belmont, Dallas, Cherryville, Stanley, Kings Mountain, and Shelby North Carolina.