can I sell my home in NC if it's in foreclosure?

Stop Foreclosure in Charlotte: Take Action and Sell Your Home Fast

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Are you facing foreclosure in Charlotte and wondering if you can sell your home in this situation? The good news is that selling your foreclosed home is possible. If you’re a homeowner in Charlotte dealing with foreclosure due to a job loss or divorce, there are multiple options available to you to sell your home quickly. While this article does not offer legal advice, it does present real-life examples of how homeowners might choose to sell their houses.

Foreclosure results from missed mortgage payments. It’s a legal process where the lender reclaims the property once the borrower defaults on the loan. The home is then sold at auction to pay off the outstanding loan balance and other related debts. Foreclosure not only results in the homeowner losing their home but also has severe consequences for their credit score.

Naturally, nobody expects to face foreclosure when buying a house.

However, according to a recent survey, nearly 1 million Americans are concerned about losing their homes (U.S. Census Bureau Household Pulse Survey, conducted from July 27 to Aug. 8, 2022). Foreclosure can occur for various reasons, including:

  • Job loss  
  • Divorce or death in the family 
  • Medical bills 
  • Credit card debt with increases interest rate 
  • Natural disaster 

While facing foreclosure is tough, immediate action can help you save your home. Don’t know where to start? Seek help from agencies like the North Carolina Housing Finance Agency and consult with a foreclosure lawyer as soon as possible.

What is Foreclosure?

Foreclosure happens when you stop paying your mortgage and don’t have the means to make up those payments. Your lender will start the legal process of taking back the house to cover the loan. Lenders don’t want the house back. They are seeking repayment. They want you to catch up on payments or pay off the loan.

How can JMS Home Buyers Help Stop Foreclosure?

We have a success story to share about how we helped a couple in Charlotte prevent foreclosure. JMS Home Buyers bought their house with cash after a thorough conversation about their situation and the condition of the property.

The couple had separated, and the wife had moved out, assuming that the husband would handle the mortgage payments. Unfortunately, he stopped making payments, and the house was turned into a rental without her knowledge. When we visited the property, we found that it was in poor condition, and the tenants were unaware that the house was facing foreclosure.

A traditional home sale was not a viable option in this case, as the property needed significant repairs and cosmetic work. Additionally, scheduling showings and open houses with tenants in the house was not possible.

JMS Home Buyers offered to purchase the foreclosure property in cash, with the tenants still living there. Our offer covered the remaining balance of the mortgage, tax liens, and the couple received cash at the closing. They did not have to worry about dealing with the tenants, making repairs, or paying the closing costs. As a result, they were able to avoid foreclosure.

How Long Do You Have Before You Lose The House?

In most states, the foreclosure process is started after missed payments, followed by a public notice, foreclosure, auction, and eviction. However, the time needed for each step varies depending on the state. You may have up to nine months or as little as 120 days (about four months) before the bank can foreclose using a judicial or non-judicial process. Take the notifications seriously, whether they arrive by phone, email, or mail. During this time, the lender may offer loan modification programs to help. The good news is the bank doesn’t want your house back. The public notices are designed to protect you from unlawful home seizures and let you know that the process has started.  

As the foreclosure process progresses, your options to save your credit rating and equity in your home will become increasingly limited. The faster you can act with your bank the better. Waiting it out is not a strategy. The lender can guide you through available options and potentially offer solutions like; loan modifications, forbearance and a repayment plan.  

The Different Types of Foreclosure

There are two types of foreclosures: nonjudicial foreclosure or judicial foreclosure. Contacting a Charlotte attorney who specializes in foreclosures will help you understand the process and time lines. They can provide you with helpful information that will save you time and money.

What Is Non-Judicial Foreclosure? 

Non-judicial foreclosure is a quick and inexpensive method used by banks to foreclose on your property in Charlotte. This process does not require the homeowner to go to court and can be completed in accordance with state statutes. In non-judicial foreclosure, your lender takes possession of your property to sell it and recover any outstanding debt using a “power-of-sale” clause in the deed of trust. Not all states allow for this process, but if yours does, the lender will usually opt for this option to avoid any court fees.

What Is Judicial Foreclosure?

In states requiring judicial foreclosure, the lender must file a lawsuit with the court to seek permission to sell the home. You will receive a letter from the lender, and it is essential to respond to it, whether you agree with it or not. If you don’t respond, the bank will automatically win the case, and the home will be repossessed and sold. You will still be responsible for paying the difference between the remaining mortgage and the sale price.

Foreclosure auctions are different from regular home sales. According to foreclosure data, Charlotte foreclosures are typically priced lower than the market price. Lenders are much more likely to let go of properties for less than their value to regain their investment costs.

Even if your home is in excellent condition and worth more than what you owe on the mortgage, you may still owe on a house that you no longer own. This is known as a deficiency judgment, and it can be an expensive and time-consuming process for lenders to recover their debt. Because of this, most lenders prefer to avoid a judicial foreclosure and instead opt for a non-judicial foreclosure. They would rather work with you to modify your loan to fit your budget or have you sell and pay off the loan, rather than take possession of the property.

Differences Between Non-Judical and Judicial Foreclosure

In summary, the differences between non-judicial and judicial are process, timeline, and redemption period. Non-judicial foreclosures follow a specific process outlined in state law and can be completed more quickly than judicial foreclosures, which require a court lawsuit. In some states, homeowners can redeem their property after a foreclosure, but non-judicial foreclosures typically have a shorter redemption period. Most North Carolina foreclosures are non-judicial, meaning they are heard before the clerk of court, not the judge. And there is a redemption period in which you can redeem the home if you have the means to pay off the loan.

Selling Your House to Avoid Foreclosure

Let’s explore the options you’ll have to sell your house based on your situation and schedule. If you have a home in great condition your options for selling will look different from someone who has a home that needs costly repairs. How you sell and how quickly you can sell your house depends on condition, location, and timing.  

What do you do when you can’t afford to move? Relocating costs money, and finding a cheaper living place takes work. And how can you sell your house fast when it needs work and you have nowhere to go? These are problems investors like JMS Home Buyers get asked regularly. Let’s start with the easy scenario: that you have a lovely home, equity, and time to find a buyer. You’ll want to hire a real estate agent.

Hire A Real Estate Agent

You’ll consider contacting a Charlotte real estate agent when selling a home in a great area and in good shape. An agent will list your house on the MLS and do the necessary marketing to find a buyer. They are earning a significant percentage of the sale price as their commission. As someone struggling to pay off debt, sacrificing up to 6% of the sale price may not be feasible. 

The sale’s unknown timing and the buyer search are stressful. Thankfully, your real estate agent is equipped to help ease your worries. The agent will have professional photographs taken for the MLS listing. They will also have the expertise on how to stage your house. They know what Charlotte buyers want and will show you where to spend money on upgrades, repairs, and staging.  

Charlotte real estate agents play a crucial role in finding the perfect buyer and handling the closing process, but sometimes waiting for a traditional sale can be too long. It typically takes over 30 days, and there’s no guarantee of how long it will take for the right buyer to come along when relying on bank financing. Moreover, the condition of your home is a significant factor to consider. Properties with tenants, hoarding issues, or extensive repairs may not be ideal for a real estate listing.

Short Sale

A short sale is a process you must consider if you owe more on your house than its current worth. It takes time and effort, and many home buyers avoid it. To be eligible for a short sale, you need to prove your financial hardship and find a real estate agent that works with short sales if approved. However, it’s worth noting that a short sale can decrease your credit score for the next 5 to 7 years.

Sell Your House AS-IS to A Cash Buyer In Charlotte

If you’re looking for a fast and hassle-free option, consider selling your house as is to a cash buyer. At JMS Home Buyers, we specialize in buying houses for cash, allowing you to skip the time-consuming process of making repairs or staging your home for showings.

With us, there are no showings or open houses to worry about. We understand that privacy is important, and we offer a discreet way to handle the sale of your home.

Our cash buying service is particularly beneficial for those who have hoarder houses, rental properties with tenants, or homes with costly repairs such as mold and termite damage. We take care of all the details, so you can sell your property quickly and move on with your life.

When it comes to selling your home, there are many advantages of choosing a cash home buyer like JMS Home Buyers:

  • A Quick and Hassle-Free Closing Process
  • Choose Your Closing Date
  • No Closing Costs or Agent Commissions
  • Private and Discreet
  • No Showings or Open Houses to Schedule Around
  • No Out-of-Pocket Expenses for Staging or Repairs

The Cons of Selling to A Cash Buyer

While there are many benefits to selling your home in Charlotte to a cash buyer, there are also some potential drawbacks to consider:

1. Lower Offer: Charlotte cash buyers typically offer below market value, often in the range of 50-70%. This is because they factor in the cost of potential repairs, closing costs, and the fact that they won’t earn interest while waiting to resell the property. While attractive for its speed and convenience, the convenience comes at a financial cost.

2. Limited Negotiation: Cash buyers often have a “take it or leave it” approach, leaving you with less room for negotiation compared to working with a traditional buyer who might be willing to budge on price or closing costs. You may not be able to maximize the sale price of your home.

3. Potential Scams: Unfortunately, the cash buyer market can attract scammers. Be cautious of unsolicited offers or buyers who pressure you to close quickly without proper inspections or legal representation. Do your research, choose a reputable company, and get everything in writing before proceeding.

The decision of whether or not to sell your home to a cash buyer depends on your individual circumstances and priorities. Weighing the pros and cons carefully and doing your research will help you make the best decision for your situation

Can You Stop Foreclosure Once It Starts?

Pay Off Your Loan & Fees

The best scenario is catching up on your mortgage. Suppose you’re serious about turning your finances around and you want to keep your house. In that case, it might be a good idea to seek advice from a financial expert such as The National Foundation for Credit Counseling.

Declare Bankruptcy 

For some, bankruptcy may be an option for keeping your home. Filing for Chapter 13 bankruptcy will trigger an “automatic stay” that temporarily halts the foreclosure proceedings. This gives you time to catch up on payments and develop a repayment plan. It’s important to understand that the financial consequences come at a high cost. Consult with your attorney before seriously considering filing for bankruptcy.  

The Homeowner Affordability and Stability Plan (HASP) 

If your debt outweighs your income, you might be approved for the Homeowner Affordability & Stability Plan (HASP). This program is intended to aid individuals in the United States at risk of foreclosure due to insufficient income. The government created the program to help homeowners restructure their monthly payments in accordance with a limited budget. Apply for the program here to see if you are eligible.  

Sell Your House Fast for Cash

If you’re dealing with a problem property, there’s a solution that can help you move forward quickly. JMS Home Buyers, a local real estate investment company, offers a hassle-free way to sell your house for cash, no matter its condition or location. Whether your property needs repairs or is move-in ready, JMS Home Buyers is ready to make a fair cash offer. With our expertise and multiple solutions, you can trust us to close on time and handle all the details. 

We Buy Houses Charlotte – Get Your Offer Today!

We understand that you’re facing a difficult situation and that losing your Charlotte house is painful. The steps you need to take will depend on your unique situation. Please allow us to show you how we earn homeowners’ trust when they need to sell their homes fast in the Queen City. Call as at 704-707-6016 or jmshomebuyers@gmail.com.

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