Going into foreclosure is one of the scariest experiences any homeowner can face. Just the feeling of leaving your home is scary enough already, but to be forced into it makes it even worse. However, homeowners should understand that it’s probably not too late to avoid foreclosure in Charlotte, NC.
When you receive a Notice of Delinquency, it’s still not the end of the road. Even then, there are multiple options available for homeowners to avoid foreclosure in Charlotte. In this blog, we would like to share advice on the best ways to avoid foreclosure in Charlotte and on keeping your financial record as healthy as possible.
Read more to know about ways to stop foreclosure.
What is Foreclosure?
Most homeowners in Charlotte, NC aren’t able to stop foreclosure because they don’t know everything that foreclosure entails. The law states that when you sign a mortgage, you agree to pay your lender back the full amount of the loan and under their specific terms.
When you stop or miss any payment, that would be a violation of your contract. So, according to the law, your lender has the right to take back your home to recover their investment. This process of the lender repossessing your house is what we know as foreclosure.
The foreclosure process doesn’t state that your bank will come for your house right away if you’re a few days late in your payment. You are most likely to have a 15 day grace period from your lender that might include a late fee.
The foreclosure period can only start after you’re late in your mortgage payment for a total of 90 days or more. The process can then take from a couple of months to even a year, so you have time to apply any of these five pieces of advice to avoid foreclosure in Charlotte.
Learn More About Your Case
In most cases, homeowners over panic because they’re not entirely aware of their foreclosure situation. Every foreclosure case can be different because the terms and conditions every homeowner agrees with their lenders might vary. Please take an in-depth look at your first late payment letters as they might contain important information on how to prevent foreclosure.
Foreclosure terms also vary depending on the state’s regulations, so you should start researching Charlotte’s usual procedure. In some states, the lender needs to file a lawsuit against you before continuing the foreclosure procedure. In other cases, it’s not necessary. It’s important to know this information to determine how much time you have to opt for alternate solutions.
Make a Deal With Your Lender
Foreclosure is a tedious and expensive process. Your lender will probably be willing to figure out an arrangement with you before continuing the foreclosure process. You have four financial options that can benefit you and your lender:
- Refinancing
- Repayment Plan
- Forbearance
- Loan Modification
Use a HUD-Approved Housing Counselor
If you’re done trying to make arrangements with your lender, you should consider speaking with a federally-funded agency that can secure you an affordable repayment plan. But be careful not to not fall into a more difficult situation by always looking for free and federally-approved agencies only. However, these agencies can be beneficial to figure out the best financial repayment strategy for you and your lender.
Filing for Bankruptcy
Filing for bankruptcy sounds harsh and can negatively impact your credit score. But filing for bankruptcy buys you some time to slow down foreclosure or, in some cases, even eliminate your debt before it’s too late.
Use a Home Buying Company
Your best option is probably to use the service of a home buying company like Opening Doors Properties. With us, you can receive an all-cash offer for your home in as little as 24 hours after our visit. We offer cash for your Charlotte property, and we can give it to you in as little as 7 days. You don’t need to worry about any legal paperwork or requirements because we can take care of that for you.
Avoid foreclosure in Charlotte, NC today by selling your house without the need of a realtor, having to pay fees and commissions, and making any repairs. Go ahead and learn more about how our services will help you stop foreclosure.