North Carolina is a Non-Judicial foreclosure state.
Non-Judicial means- Your lender can foreclose against you without having to file suit or appear in court.Your deed of trust will have a power of sale clause.
The Steps Your Bank will take throughout the foreclosure process
1. Notice of Default- This notice is filed at the county courthouse by the lender trustee.
Once the notice if filed it becomes public information from newspapers and placed on the local foreclosure board.
Your lender will send you a copy of the notice of default by mail, if you left the house and do not receive this notice,your bank will still proceed with the foreclosure process. The Sheriff department will serve you with the Notice of default papers and if you are not present will place them on the door after a few attempts.
2. Reinstatement Period- You can bring your loan current and pay all fees against your property a couple days before the sale. You will have to pay the payments in arrears plus the attorney and court fees assessed.
3. Notice of Trustee Sale- If within the time period you do not bring the loan current the trustee for the bank will proceed with setting a date for your property to be sold. The trustee will make the sale public, stating the day and time of the sale, in North Carolina the sale is at the Courthouse steps and starts about 10am or 11am.
4. Redemption Period- You will have the chance to reinstate the loan until their is a bid placed on the property. During this period the loan has to be paid in full plus all the attorney fees and court cost.
5. Trustee Sale- During this time frame the trustee of the bank sells your property to the highest bidder and they now become the owner of your property.
These steps can take anywhere from 90-120 days, if you can't come up with the money to save your home Maison Investment can purchase your home or help you with this process of foreclosure.
When you are faced with foreclosure most people have the tendency to vacate the property or change their phone numbers so they can stop the harassing calls. This is not the option you should take especially if you want to save your home. Making contact with the bank and understanding your options is key to saving and protecting your home.
Filing Bankruptcy can keep you in your home but won't protect your credit.
If you choose to keep your home instead of allowing the bank to foreclose, you can file for Bankruptcy. This process requires you to hire an attorney to help you file the correct chapter of bankruptcy.
Your attorney will file an order of relief to stop all creditors from collecting from you including your lender that is foreclosing your home. A trustee will be appointed to see if filing bankruptcy is right for you and assist you in finding ways to pay your creditors based of your income. Filing bankruptcy can freeze the foreclosure process for months or even years.
Different Chapters of Foreclosure.
Chapter 7- This chapter is very common form of bankruptcy, during this chapter your assets are liquidated to payoff your creditors. If you have equity in your house, you will be required to sale your property so the equity can pay all your creditors off. This will not allow you to keep your home if that is the case.
Chapter 11- This chapter is used for companies and anyone with a high net worth. During this process you can negotiate with your creditors yourself on what they are paid to settle the debt.
Chapter 12- This chapter is used for farmers, this allows you to set up a payment plan during the bankruptcy period and keep the farm. This process can last to 3 to 5 years and payments are based on your area.
Chapter 13- This chapter can buy you time with your foreclosure so you can stay in your home. During this chapter you are allowed 3 to 5 years to pay your debt and allowed to set up payment plan to pay your home. You will have to start making payments immediately when the chapter is approved and if you miss a payment during this process your lender will foreclose.