Avoid Foreclosure In Henderson, Haywood, and Buncombe Counties
Were you excited to buy a home, but paying the mortgage isn’t going smoothly? Do you have unexpected costs or financial hardship? If you don’t pay in a timely fashion, you may face foreclosure.
Foreclosure is when the bank or your lender takes possession of your home after nonpayment of the mortgage. In North Carolina, you do have options if you’re struggling to pay your mortgage to avoid foreclosure. Before forfeiting all rights to the property, take action and seek assistance. You may be able to obtain funds to repay your debt, sell the property quickly, or work with your lender to set up a different payment plan.
If foreclosure seems to be in the cards for you, don’t lose hope. The thought of losing your home is definitely stressful, but there are ways out of foreclosure. Yes, you can even avoid ruining your credit score and keep that foreclosure off your record.
The Asheville Cash Buyers team has experience working through the foreclosure procedure in Western North Carolina, and can help you decide what’s best for your unique situation. Read on for more details and don’t hesitate to call us with questions.
Where to begin?
- Educate yourself – learn about the foreclosure process and some of the solutions to get out of foreclosure.
- Find helpful resources in your area – from legal to real estate and beyond.
- Take action! No one can save you but yourself.
The Foreclosure Process
Pre-Foreclosure is the preliminary stage before the lender makes legal filings. This is the optimal time to stop a foreclosure to avoid negatively affecting your credit score. You can speak with your lender, list your home for sale, or find a private investor willing to purchase or take over your existing loan.
At least 45 days before starting the official foreclosure process, your loan servicer must send you a notice with the following information:
- Charges you must pay in order to make the loan current. This includes the past due amount, interest charges, and late fees.
- The mortgage lender or servicer’s contact information. They may also send contact information for an agent who is authorized to work with the lender on your behalf.
- Information about an HUD-approved housing counseling agency, like OnTrack Financial Education & Counseling in Asheville.
In North Carolina, the actual foreclosure process begins when the lender files a Notice of Default. This filing in the public records indicates where the home is located and that the homeowner is behind in payments and the home may be seized.
After filing, the lenders must generally wait 90 days before selling or auctioning the property. During this time, you can make an effort to work with your lender or perhaps find another source of income to pay off what you owe.
After this 90 day period, the lender alerts you and the public with a 20-day notice that the home will soon be available for sale or auction. The clerk of court may also hold a hearing with you and the lender to consider issues like whether your debt is valid and the foreclosing lender is the holder of the debt, if you have actually defaulted on your payments, whether the deed of trust allows foreclosure is allowed, and whether the lender gave proper notice. The clerk will then decide to postpone the foreclosure and allow more time for you to pay or to allow your lender to proceed with the sale.
Once the home has been auctioned off, the previous tenants are required to move out unless a rental agreement has been made between the new owners and the previous owners.
There are even more details and options in this scenario – this is just an overview. The process is very complex and depends on what kind of loan or mortgage you have and the type of property, so contact us at Asheville Cash Buyers to help you navigate the possibilities.
You can avoid the foreclosure headache by working with your lenders before they issue a Notice of Default.
Prevent Foreclosure – Communicate With Your Lender!
If you’re not able to make your mortgage payment, you probably know before the due date. You’ve had a life event that surprised you and hurt you financially. Perhaps you are getting divorced, a loved one has died, or you’re suddenly unemployed. Life is a rollercoaster – even issues like needing to fix your car or pay a medical bill can plunge your finances into a downturn.
When these things happen, this is the time to swallow your pride and call your lender. Generally, lenders will wait 60 days from the date of the missed payment before filing a Notice of Default. During this time, you should try to work with them to make up the payments or find another resolution. They may offer the following options to prevent starting the foreclosure process:
Forbearance – Lenders may give you extra time, postpone your payment, and help create a payment plan that you can afford. However, with most forbearance plans, you will continue to accrue interest, so pay close attention to that.
Repayment Plan – This plan will add a small amount to your monthly payments until you’ve paid off the amount of the missed payment.
Note Modification – Your lender might look at making changes to the loan conditions. For example, they may freeze your interest rate for an adjustable mortgage or extend the length of the loan.
Partial Claim– There are some government loans that you can use to pay back missed mortgage payments if you meet the lending criteria.
If you’re not comfortable speaking to the lenders alone, work with a qualified and experienced team that knows how to work with the banks to help homeowners out of this situation.
Ways to Stop a Foreclosure
If your lender won’t work with you, there are other options to stop foreclosure proceedings. However, you must act quickly and really do some research to know which option is best for your situation.
Sell Your Home –Talk to an experienced real estate agent familiar with home prices in your area to get an accurate market analysis. Listing with a discount broker might sound like a reasonable way to save money but you should interview different agents and find one with lots of marketing and sales experience. Keep in mind that a discount broker won’t save you money if they can’t sell the home before the foreclosure process ends.
Will Your Lender Consider a Short Sale? – If your home isn’t worth as much as you owe, you might be right for a short sale. In this situation, a buyer negotiates with the lender to see if they will accept less than the full amount you owe on the loan. There are specific criteria that you need to meet to sell through a short sale. Consult a professional and do additional research before jumping for a short sale opportunity. Remember, this affects your credit like a foreclosure would, and not all homes qualify.
Sign a Deed-in-Lieu of Foreclosure – Basically, you would be signing the deed back to the lender in this situation, closing out the loan and stopping the foreclosure process. This also affects your credit the same as foreclosure. In this case, you may be able to negotiate to stay in the home or rent the home for a lower price until it’s sold.
If the lender won’t work with you and you have to leave your home, your options are limited. However, you may still be able to save your credit rating, save money, and get out of this situation without too much headache.
We can evaluate your specific situation for you to lay it out in clear to understand terms exactly which options are realistic and exactly what each option can do for you and your family. Just get a hold of us and tell us a bit about where you are in the process. From there, we’ll get back to you within 24 hours with a clear explanation of what will help you reach your goals in your specific situation.
If you’re facing foreclosure and live in Haywood, Buncombe, or Henderson County in North Carolina, don’t lose hope!
In addition to your lender, look for local resources in WNC. You may want to find:
- A local realtor who knows your area and market details. Be wary, as they may convince you to sell your home unnecessarily.
- A local real estate attorney can help you wade through the laws and requirements.
- A local, honest real estate foreclosure solutions provider like Asheville Cash Buyers. We can look at all your options without bias and without fees.
Asheville Cash Buyers is a team of market experts in Haywood, Buncombe and Henderson counties. We’ve worked with countless homeowners in foreclosure situations. Our goal is to help you protect your credit, or sell your property quickly with no fees, finding all-cash offers.
Contact us today to get back to living your life soon – we’ll do all the legwork.
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Right now, our team can help you with any house in Buncombe County, Haywood County, or Henderson County North Carolina. Whether you are dealing with evictions, probate, foreclosure, or repairs, our team has a solution for you. Give us a call today to learn more about what we can do for you! 828-222-6443