Avoiding Foreclosure

Foreclosures in North Carolina are long and complex, taking 90-120 days, and requiring multiple notices from the bank signaling their intent. You can pay a good lawyer to buy you some time, but unless you find a way to pay all of the late fees and mortgage payments, foreclosure is inevitable. This results in loss of the house and your credit. Fortunately you can “redeem” the foreclosure right up until the last minute by selling the house and paying off the loan. We fortunately also offer the option to sell your house, avoid foreclosure, and continue living in it. 

Short of coming into enough money to keep the house, selling the house yourself is always preferable, since you preserve your credit, and since you can usually end up with some cash (perhaps even a lot of cash) in hand at the end of the day. Timing is key, since payments, penalties and interest add up fast, taking away money that you can get by selling. Your credit will also suffer as late payments get reported to credit bureaus. So sooner is better.

Sometimes a house is worth less than the mortgage, in which case you need to contact your lender to request a short sale- which means selling the house at a loss to the bank, but without the hassle of foreclosure, and with far less damage to your credit.

You’re always welcome to consult with us about the value of your home, as-is, to see if you can escape foreclosure, hopefully with cash in hand.