Foreclosure Assistance in North Carolina

What to expect in foreclosure?

As you become behind in your mortgage payments, your lender will eventually send you a notice of their intent to begin foreclosure proceedings on your home. Your lender will then file a lawsuit with a notification sent to you, and allow you to respond (with a timeframe of 15 to 30 days). If no response is given, the lender will send a notice to sell your property, an auction will occur, and you may be evicted.

Don’t let your home be taken from you. We can work with your lender to arrange a loan modification or forbearance agreement that’s equitable and reasonable for you to repay. We also offer bankruptcy services that may save your home from being taken. Contact us now to schedule an initial consultation.

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Forbearance agreement and bankruptcy options

When it comes to facing a foreclosure on your home, you have a short time to act. We can work with you to draft a forbearance or loan modification agreement instead of foreclosure or advise you on your bankruptcy options, which in many cases, can protect your property from being seized or sold.

We’ll take the time to understand your needs, answer your questions, and ensure you have the information you need to make the best possible choices. We’ve helped countless families recover from foreclosures, and we’re here for you when you need us.

Legal Definitions for Foreclosure Assistance Law in North Carolina

Understanding the legal terms for foreclosure law in North Carolina can provide homeowners and borrowers with a clearer perspective on their rights and obligations throughout the foreclosure process.

It’s essential for individuals facing foreclosure to be aware of these terms, as they play a significant role in the procedures and outcomes of foreclosure cases. It is recommended you get legal assistance, speak with a legal professional specializing in foreclosure law.

Acceleration Clause: A clause in a mortgage or deed of trust that allows the lender to demand immediate repayment of the entire loan balance if the borrower defaults on their mortgage payments.

Debtor: An individual or business that owes money to another party.

Discharge: The release of a debtor from personal liability for certain debts after the completion of a bankruptcy case.

Default Default occurs when a borrower fails to make their mortgage payments on time. This is often the first step in the foreclosure process, as it gives the lender grounds to take legal action.

Deficiency Judgment:
If the sale of a foreclosed property does not cover the full amount owed on the mortgage, the lender may seek a deficiency judgment against the borrower for the remaining balance.

Deed of Trust: A document that secures a loan on real property. In North Carolina, it involves three parties: the borrower, the lender, and a trustee who holds the legal title until the debt is paid off.

Equitable Redemption: The legal right of a borrower to pay off their defaulted mortgage and prevent foreclosure up until the time that the property is sold at auction.

Foreclosure: Foreclosure is the legal process that allows a lender to repossess and sell a property, typically due to non-payment of the mortgage.

Judicial Foreclosure: In North Carolina, foreclosure is typically done through judicial foreclosure. This means that the lender must file a lawsuit in court to foreclose on a property.

Judgment Lien: A legal claim placed on a property by a creditor in order to secure payment of a debt.

Junior Lien: A secondary lien on a property, typically taken out after the first mortgage or lien has been established.

Lis Pendens: Lis pendens is a Latin term meaning “lawsuit pending.” In foreclosure cases, it refers to a notice filed with the county clerk stating that a lawsuit has been initiated against the property owner.

Lien: A legal right or interest that a lender has in the borrower’s property, which remains until the debt obligation is satisfied.

Mortgage: A loan used to purchase or finance a property, with the property serving as collateral for the loan.

Notice of Default: A notice of default is a formal written notice given to a borrower when they have failed to make their mortgage payments on time and are in default. It typically provides a deadline for the borrower to cure the default.

Non-Judicial Foreclosure: A foreclosure process that does not involve court action but follows the procedures outlined in state statutes. In North Carolina, most foreclosures are non-judicial.

Preferential Transfer: A transfer of property made to a creditor within 90 days before filing for bankruptcy, which may be avoided or reversed by the court if it is found to have been made in an attempt to favor one creditor over others.

Power of Sale Clause: A clause in a mortgage or deed of trust that allows the lender to sell the property at auction if the borrower defaults on their mortgage payments.

Pre-Foreclosure Notice: A notice that must be sent to the borrower before the foreclosure process can officially begin, providing them with information about their rights and options.

Right of Redemption: In North Carolina, a borrower has the right to redeem their property by paying off the full amount owed on the mortgage before the foreclosure sale takes place. This can prevent the loss of their home.

Redemption Period: A period of time after a foreclosure sale where the borrower has the right to reclaim their property by paying off the full amount owed.

Short Sale: A short sale is when a property is sold for less than what is owed on the mortgage, with the lender’s approval. This option may be available for struggling borrowers as an alternative to foreclosure.

Sheriff’s Sale: An auction conducted by the local sheriff or other designated official in order to sell a foreclosed property.

Strict Foreclosure:A legal process in which a lender takes ownership of a defaulted property without having to go through the foreclosure sale process.

Servicer:The company that manages the mortgage loan account. Under federal law, the servicer cannot begin the official foreclosure process until the loan is more than 120 days past due.

Trustee Sale A trustee sale is when a foreclosed property is sold in a public auction after the lender has obtained a court order for foreclosure.

North Carolina Legal Aid: Offers free legal services to low-income individuals, including help with foreclosure cases.

Consumer Financial Protection Bureau (CFPB): Provides information and resources regarding mortgage servicing and foreclosure prevention.

U.S. Department of Housing and Urban Development (HUD): Offers advice on avoiding foreclosure and lists HUD-approved housing counselors in North Carolina.

North Carolina State Bar: Can assist in finding a lawyer who specializes in foreclosure law within the state.

The legal definitions provided on this page are for informational purposes only, and should not be construed as legal advice. Please consult with a qualified attorney for specific guidance and advice regarding your individual situation.

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