Suppose you’re worried about losing your Charlotte property due to circumstances beyond your control. In that case, working with your lender to find a resolution before things get worse is best. However, it can be helpful for Charlotte homeowners to understand what comes next during the foreclosure process. Read on as we explore what to expect during foreclosure in Charlotte.
Default
Lenders understand that homeowners in Charlotte are dealing with the strain of inflation and rising energy costs. And there are times when homeowners have temporary financial setbacks. Banks will often have a grace period for these situations. However, suppose you’ve fallen behind and realize it isn’t possible to get caught up on the missed payments. It is best to contact the bank before the letter of default arrives. The lender’s grace period of a missed payment will quickly result in a notice of default. The bank’s default notice is their attempt to contact you to prevent a foreclosure. They want to avoid foreclosure if at all possible.
Notice of Default
Lenders in will issue a Notice of Default to homeowners, which gives them 90 days to pay the to pay missed payments and get caught up on the loan. In those 90 days, the notice of default will appear in preforeclosure databases. These notices are public information.
Mortgage Reinstatement
If you are a homeowner in Charlotte and have received a notice of foreclosure, there is still a chance to prevent it with a repayment plan, otherwise known as a reinstatement. A mortgage reinstatement is the act of restoring a delinquent mortgage to current status. You can reinstate your mortgage by catching up with past due payments, including interest and penalties, and then continue to pay your mortgage as usual.
If you need to catch up on your payments, you can request a repayment plan from your lender. This plan allows you to make regular monthly payments and an additional amount to pay off the delinquent amount. You can contact your lender to determine the amount you must pay to avoid foreclosure and reinstate your loan.
Notice of Sale
When a homeowner in Charlotte receives the notice of default regarding their mortgage, they can expect to receive news of the sale 90 days after the initial announcement. Once they receive the sale information, they will have 21 days before the lender puts the property up for auction. The lender appoints a trustee to handle the foreclosure process and sale of the home.
In North Carolina, when a homeowner defaults on their mortgage, the foreclosure process is usually handled by a trustee. The trustee is an unbiased third party appointed by the lender to manage the sale of the property
- Managing the foreclosure timeline: This includes sending notices to the homeowner, scheduling the auction, and overseeing the sale.
- Advertising the property: The trustee ensures the property is advertised properly to attract potential buyers.
- Conducting the auction: The trustee oversees the bidding process at the auction and ensures it follows legal requirements.
- Handling the sale proceeds: After the auction, the trustee collects the funds from the buyer and distributes them according to the loan agreement, which typically involves paying off the mortgage lender first and returning any remaining funds to the homeowner (if any).
Nonjudicial foreclosure is a process that occurs outside of the court system. This helps to streamline the timeline and reduce costs for both the lender and the homeowner. However, it’s important to note that homeowners still have certain rights during the process. For example, they have the right to redeem the property before the auction or challenge the foreclosure if there are legal issues.
Auction
During the process of foreclosure, the final step for homeowners in Charlotte is the auction. At the auction, the highest bidder must pay for the property immediately. If the home does not sell at the auction, it becomes a real estate-owned property, otherwise known as a REO, which goes back to the lender. If you have not yet moved out of the home you can expect the buyer to serve an eviction notice.
Another Option
Rather than going through foreclosure consider selling your home and cash out on the equity in your home. Selling your home with an agent is the perferred and most profitable way to sell a home if you have time. And if you have the ability to make the home ready for resale.
If your situation doesn’t afford you to make those necessary repairs or you need to sell within 30 days, you have the option of selling directly to a home buyer. Companies that buy houses with cash can close quickly and will buy your home as is.
Whenever you can list your home and find a retail buyer who falls in love with your home, you should do so. But in some cases, selling as is for cash is the solution to stopping foreclosure when time has run out.
JMS Home Buyers LLC
Selling directly to JMS Home Buyers LLC can turn everything around for homeowners in Charlotte who fear foreclosure. Our goal is to show how you can save time, save money, and reduce stress with a quick home sale.
JMS Home Buyers LLC is a real estate solutions company established in 2015. We specialize in purchasing houses quickly and easily, regardless of their condition or situation. Our goal is to simplify the process for you.
We are local cash buyers who believe in building relationships with people. That means we take the time to talk to you about your situation, what you need to achieve, and when you need it done. If you are facing foreclosure we would like to help. Give us a call to start the conversation, at 704-707-6016 or jmshomebuyers@gmail.com