Foreclosure Solutions You Need to Know!

In North Carolina Lenders will hire an attorney in preparation to take legal action to recover a past-due debt by filing a foreclosure suit called a Special Proceeding.

In the early stages, you have several options, if left unresolved they will disappear.

Start with getting in touch with your bank and explain your financial situation. The bank will switch you to the Loss Mitigation Department (for collections) to handle payment recovery. The banks will try to work with you regarding your missed payments. It is important you fill out all the Loss Mitigation paperwork as best you can. This is the information the bank uses to verify and determine what they are willing to do to get the loan back to good standing. 

The banks are looking to see if the reason for the missed payments has been corrected or resolved and if your income has stabilized. If not, you have fewer options available.

We have helped many families resolve and navigate this process.

Some of Your Options:

Reinstatement:  Bring the loan current by paying the missed payments. Usually with help from family or an outside company. This is sometimes hard to do, but it is an option.

Forbearance (many forms):  A mortgage forbearance is a type of payment relief that temporarily suspends or reduces your payments for a set period. The banks might consider your missed payments as your forbearance period. Moving forward you’ll repay the missed payments in a lump sum or through installments. If it is in the form of installments, the lender will add a specific amount to each monthly payment when you resume paying your mortgage.

Special Forbearance Plan:  Some lenders will apply the missed payments to the back end of your loan and keep the payments the same and extend your loan. In my opinion, this is one of the best choices. 

VA loans:  Some VA loans can be suspended if you meet very specific criteria. Be careful, missed payments still rack up late fees, attorney’s fees, and will increase your payoff or loan amount.

Housing Grants: There may be some government programs still available. Unfortunately, the North Carolina Homeowner Assistance Fund (NCHAF) no longer is accepting applications.

Bankruptcy: Please talk to us before filing bankruptcy. We believe there are better ways to resolve mortgage delinquency. A bankruptcy is a temporary fix and can cost you over $6,000 in attorney’s fees and court costs, which are added to your repayment plan. It usually costs between $800 and $1500 just to file the paperwork. A large percentage of folks who file bankruptcy end up back in foreclosure due to the high payments.

If you are proactive, and your income has stabilized, there is a favorable chance you and your lender can work something out. 

What’s next if your bank won’t work with you? Many families we work with fall into this category. It is not uncommon for families to be six or more monthly payments behind plus late fees, attorney’s fees, and even past HOA dues. The dollar amount to reinstate the loan becomes so large that even family and friends can’t help.

If the bank can’t work with you, they will push legal action to collect the debt; this process is known as foreclosure. The process begins when an attorney files a Foreclosure Special Proceeding and sets a hearing. At the hearing, a foreclosure sale date is set. Once your home is sold, the proceeds are used to repay the entire loan and fees. The sale forces you to vacate the house as you no longer own it.

If you have no means of paying back your mortgage due to unforeseen circumstances, now is the time to shift your thinking towards equity recovery.

When you cannot afford to stay in the house, it is necessary to protect and save as much equity in your house as possible. There is only one way to do this. This is through liquidating and selling the property. Although leaving a home is never anyone’s first choice, having a large sum of cash in hand can certainly help in starting over.

Our Foreclosure Exit Strategy

This is where we come in. Through our equity recovery program, we will determine the exact dollar amount you will receive at closing. I then can stop the foreclosure by handling all paperwork and paying all fees/payments to pay the loan off. Next, I will swiftly update the property to sell and maximize your home’s value. At closing you will receive the equity amount we agreed upon upfront, and you can start over fresh without the burden of a foreclosure on your record. This foreclosure solution works to maximize your equity payoff at closing. This also stops a foreclosure from being on your credit report. 

Contact us: If we can be of any service to you in your present situation, give us a call or text at (910) 880-0500. It never hurts to have a conversation; we are glad to help! Learn more about us and hear our foreclosure success stories at Foreclosure Success Stories

Call Us!