25 Mar What Is The Procedure For Foreclosure And What Can Be Done To Stop It?
Once a foreclosure case has been filed in the court, North Carolina homeowners often have less than two months until their home is sold at foreclosure sale. The foreclosure suit typically starts after two or three mortgage payments are behind.When foreclosures are filed in North Carolina, the mortgage company posts a copy of the foreclosure complaint at the courthouse and also sends a copy to the homeowner. A foreclosure hearing is scheduled where the mortgage company goes to the judge (magistrate) and provides proof that the payments are in default and the mortgage company is entitled to foreclose. The homeowner can go to the hearing and present evidence that they are not in default (behind) and that the mortgage company is not entitled to proceed. If the judge finds a default has occurred, the mortgage company is allowed to proceed to sale. A sale must be advertised for three weeks before it can take place.
There are people who got to courthouses to review the foreclosure documents filed, gather names of the homeowners, and then they contact the homeowners with various offers of help.
Offers of help may be legitimate, but many seek to take advantage of troubled borrowers. The homeowner may be offered a straight purchase of the property for a price well below the true market value of the property. Even though the offer is low, getting something might be better than getting nothing but homeowners should check with Realtors to see if they can sell the house themselves and keep more of their equity.
The homeowner may be offered “mortgage assistance” or help negotiating with their mortgage company to try to stop the foreclosure, often for a fee equal or greater than the mortgage company. The mortgage company can work with the homeowner, or not. The choice is completely theirs. Some mortgage assistance companies make big promises that they can not keep. Many people find that the mortgage company will not work with them just days from the foreclosure sale. The time these assistance companies use up often leave people with little time to explore other options, but they should try.
For people who just need time to catch up on their mortgage payments and have the ability to pay, Chapter 13 will stop a foreclosure and give them that time. Chapter 13 does not require agreement by the mortgage company so long as the missed amounts are paid in full as part of the Chapter 13 plan of repayment. Of course there is more to the plan, and other requirements may be required, but if someone qualifies for Chapter 13 it gives people a good chance to recover. The Chapter 13 repayment plan allows people the opportunity to catch up on missed payments over a three to five year repayment period.
While no attorney can make a guarantee of results, an attorney with experience is able to tell someone whether or not it is probable that the Chapter 13 will be accepted, and at least allow the homeowner a chance to save their home.
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