Federal Mortgage Servicing Laws And Foreclosure Protections
Under federal mortgage servicing laws, the servicer must contact, or attempt to contact, you by phone to discuss loss mitigation options, like a loan modification, forbearance, or repayment plan, no later than 36 days after you miss a payment and again within 36 days after each following delinquency. No later than 45 days after missing a payment, the servicer has to inform you in writing about loss mitigation options that might be available and appoint personnel to help you try to work out a way to avoid foreclosure. A few exceptions are in place for some of these requirements, though, like if you’ve filed bankruptcy or asked the servicer not to contact you pursuant to the Fair Debt Collection Practices Act. .
Federal mortgage servicing laws also prohibit dual tracking .
Essential Information For Bidders
Tax Foreclosure Sales are conducted a little bit differently in each location. It is important for investors to understand how the process works so that they are well equipped for successful bidding. If you are an investor, please note that county courthouses may have different hours of operation, locations, auction procedures and upset bid requirements. We encourage you to review what the sale process looks like in the location of which you are interested in purchasing property.
North Carolina Foreclosure Laws For Buyers
The foreclosure laws in North Carolina generally favor the buyers, though not always.
North Carolina foreclosures are usually non-judicial, meaning the properties do not require the lender to sue the borrower. This makes the process go much smoother and faster.
Deficiency judgements are available to lenders, which means they can accept lower payment on a foreclosed property than is owed on it â also called a short sale. However, banks can take weeks or even months to respond to a short sale offer, sodon’t expect this to happen quickly or easily.
There is no redemption period for the previous owner of a foreclosure in North Carolina, but the 10-day upset period following a foreclosure auction allows anyone, including the former owner, to outbid the winner by at least 5% to gain ownership of theproperty.
Due to the Protecting Tenants at Foreclosure Act, investors who buy properties with tenants in place must honor the original lease. Anyone who intends to live in the home must give the current tenants at least 90 days to vacate the property.
Don’t Miss: B Stock Phone Number
Are Foreclosures Worth Buying In North Carolina
For many buyers, feeling like they’re profiting from someone else’s misfortune makes buying foreclosures not worth it, particularly since they may need additional work.
That said, foreclosures can result in below market sale prices and opportunities for sweat equity, so they can be worth it to patient buyers who wait for the right property to come along.
What Is A Foreclosed Home
A foreclosed home is the result of a person not paying their debt and having their home repossessed to cover that debt. This most commonly occurs when someone fails to pay their mortgage, taxes, or both.
The term “foreclosure” is often used more generally to apply to a property in any stage of the foreclosure process: pre-foreclosure, auction, and real estate owned .
Read Also: Auto Loan Debt To Income Ratio
Fees The Servicer Can Charge During Preforeclosure
If you miss a payment, most loans include a grace period of ten or fifteen days, after which time the servicer will assess a late fee. Each month you miss a payment, the servicer will charge this fee. To find out the late charge amount and grace period for your loan, look at the promissory note you signed. You can also find this information on your monthly mortgage statement.
Also, most North Carolina deeds of trust allow the lender to take necessary steps to protect its interest in the property. Property inspections are performed to ensure that the home is occupied and appropriately maintained. Inspections, which are generally drive-by, are usually ordered automatically once the loan goes into default and typically cost around $10 or $15.
Other types of fees the servicer might charge include those for broker’s price opinions, which are like appraisals, and property preservation costs, such as for yard maintenance or winterizing an abandoned home.
Report: North Carolina Mirrors National Trend Of Increasing Home Foreclosures
Homes in a Chapel Hill neighborhood.
Home foreclosures are on the rise in North Carolina and nationwide, though they remain below pre-pandemic levels, according to a new report.
A Foreclosure Market Report published Thursday by ATTOM, a company that tracks foreclosures, showed a total of 33,333 U.S. properties with foreclosure filings in March 2022, an increase of 29% from the previous month and 181% over the last year.
The increase for March marked the 11th consecutive month with year-over-year increases in foreclosures, according to the report.
North Carolina ranked 20th among states nationwide for foreclosures during the first quarter of 2022, with a total of 2,265 properties with filings, or about one for every 2,079 housing units. The figure represent a 38% increase over the last quarter of 2021, or a 102% increase from a year prior.
Total foreclosures in North Carolina during the first quarter of 2021 was 1,167, while that figure was 6,118 in 2020, WRAL reports.
Nationally, a total of 50,759 U.S. properties started the foreclosure process in the first quarter of 2022, a 67% increase from the previous quarter and 188% increase from a year ago. In March, foreclosures accounted for one in every 4,215 properties across the country.
The U.S. saw a total of 78,271 foreclosure filings for the first quarter of 2022, or about one for every 1,795 housing units, a jump of about 39% from the fourth quarter of 2021, and up 132% from the first quarter of 2021.
Don’t Miss: How To File Bankruptcy In Mn
How Nonjudicial Foreclosures Work
If the lender chooses a nonjudicial foreclosure, it must complete the out-of-court procedures described in the state statutes. Though, North Carolina nonjudicial foreclosures usually involve one court hearing . After completing the required steps, the lender can sell the home at a foreclosure sale. Most lenders opt to use the nonjudicial process because it’s quicker and cheaper than litigating the matter in court.
Foreclosures For Sale In North Carolina
There are currently 112 foreclosures for sale in North Carolina. Some of these homes are “Hot Homes,” meaning they’re likely to sell quickly. This map is refreshed with the newest listings in North Carolina every 15 minutes.
Find your dream foreclosures in North Carolina using the tools above. Use filters to narrow your search by price, square feet, beds, and baths to find homes that fit your criteria. Our top-rated real estate agents in North Carolina are local experts and are ready to answer your questions about properties , neighborhoods, schools, and the newest listings for sale in North Carolina. Redfin has a local office at 1435 West Morehead Street Suites 135 and 235, Charlotte, NC 28208. If you’re looking to sell your home in the North Carolina area, our listing agents can help you get the best price. Redfin is redefining real estate and the home buying process in North Carolina with industry-leading technology, full-service agents, and lower fees that provide a better value for Redfin buyers and sellers.
Don’t Miss: Can Bankruptcy Get Rid Of Judgements
Hire A Top North Carolina Realtor With Foreclosure Expertise
The key to getting a good deal with foreclosures is to find the right property early and protect yourself against title issues or surprise expenses. That’s why working with an agent who has experience buying foreclosures is imperative.
The right agent will help you find great opportunities before other buyers are aware of them and ensure you don’t miss any important deadlines. They may even have a relationship with the REO departments of your local lenders, which would give youan inside track on a consistent pool of properties.
The advantages of working with an agent with foreclosure expertise could be the difference between you getting your dream home or not.
Most agents only deal with one or two foreclosures a year, so finding an experienced realtor on your own might not be as easy as it sounds. Talk to a Clever agenttoday to see what they can do to help you navigate the foreclosure process and find your next home.
Should I Buy A Foreclosed Home In North Carolina
The decision to buy a foreclosed house or not depends on your circumstances and the type of foreclosure you’re interested in.
We recommend buyers who are in a hurry focus on pre-foreclosures, as those are more likely to close quickly and allow for conventional financing.
Buyers who want a standardized experience working with professionals should consider REOs as a primary focus. These transactions go slower, but REO departments handle foreclosures all the time and have a tried-and-true method of selling them.
Avoid auctions unless you’re a professional investor, flipper, or contractor. Auctioned foreclosures usually require substantial cash upâfront and may need significant rehabbing.
If you do decide to buy a foreclosure, we also recommend working with an experienced agent that can help you get the first crack at great opportunities and avoid money pits.
Consider talking to one of Clever’s recommended agents to see how they can help you find and buy your next home.
You May Like: Merchandise On Pallets For Sale
Conduct Due Diligence On The Property
Often there are some kind of physical or legal issues with foreclosures. This makes it extremely important that you conduct your due diligence by inspecting the property and running a title search. These will shield you from unexpected physical or legalissues with the property.
» MORE: Learn how inspections work and what happens after
With auctions, inspections and property viewings are generally not allowed. Your due diligence will be mostly limited to checking for a clear title, driving by the property to assess the condition of the outside and neighborhood, and preparing to makean offer at the auction.
How Do You Find Foreclosures In North Carolina
You can find foreclosures and pre-foreclosures on sites like Foreclosure.com, RealtyTrac, and Zillow, as well as on the MLS, by searching with foreclosure filters.
North Carolina foreclosure auctions are also required by law to be publicly advertised for at least 21 days in the local newspaper or on a bulletin board in the county courthouse.
Also Check: Is Bankruptcy A Good Option For Me
Western North Carolina Foreclosures
Scroll down to find the latest foreclosures for sale in Western North Carolina. Look through beautiful homes in towns like Asheville, Weaverville, Marshall, and many more. Contact Weaverville Realty if you would like to learn more or schedule a tour. Register with our site to stay up to date on all your favorite listings.
- Square Feet1,460
4315 Bridges Field Morganton, NC 28655. Semi-private home on nearly an acre lot. Beautiful, Brand New, Quality built and efficient new construction home. Completed the end of 2022 this home features 3 Bedrooms, 2 Bathrooms, Open Living area, Dining area, & Kitchen. Kitchen features granite countertops, Stainless Steel Side by side refrigerator, smooth top range, dishwasher, and Microwave. Home boast recessed lighting, brushed nickel & chrome hardware and light fixtures. Primary bedroom with ceiling fan and additional second closet. Primary bath has a walk-in shower and walk in closet. Beautiful covered front porch, rear deck and front and backyard. All 1 level living with low maintenance vinyl siding, wide concrete driveway, architectural shingle roof, Carrier brand Heat pump for heating and central air. Guest bath has a tub/shower combination. Large laundry room. Do not miss the oversized garage. Owner is a licensed real estate broker.
Listed by Shane Cook of C Shane Cook & Associates
Listed by Cary Findlay of Walnut Cove Realty/Allen Tate/Beverly-Hank
- Square Feet1,176
Listed by Francine Mira of RE/MAX Journey
- Square Feet1,025
Incredible Savings On North Carolina Bank Foreclosures
Find North Carolina foreclosures for sale through our foreclosure listings service including North Carolina foreclosed homes, government foreclosed properties and North Carolina bank foreclosures. Click on the map and start your search for cheap houses for sale through our lists of home foreclosures in North Carolina.
You May Like: Can You Get A House After Filing Bankruptcy
Redeeming The Property Before Or After The Sale
One way to stop a foreclosure is by “redeeming” the property. To redeem, you have to pay off the full amount of the loan before the foreclosure sale.
Some states also provide foreclosed borrowers with a redemption period after the foreclosure sale, during which they can buy back the home. North Carolina law provides an upset-bid period that initially lasts for ten days after the report of sale is filed. So, after the foreclosure sale, another buyer can come in and buy the home by making a higher bid than was bid at the sale. This kind of bid is called an “upset bid.” Once an upset bid is made, it starts a new 10-day upset-bid period. During the upset-bid period, the borrower has the right to pay the debt in full and redeem the property. .
Pros And Cons Of Buying A North Carolina Foreclosure
When it comes to buying foreclosed homes, the discounted sale price is usually the biggest drawer to buyers. But there are other advantages as well, particularly in competitive markets.
That said, you need to be aware of the risks that come with these properties. Title issues and physical damage are just a couple of the issues that need to be navigated when you buy foreclosures in North Carolina.
| â Benefits |
|---|
| Upset period |
â Lower purchase price
The major benefit of buying a foreclosed home is the possibility of getting it for below market value. Most sellers are in a tight place financially, so savvy buyers can leverage that situation to negotiate lower sale prices.
â Increased inventory
In a growing state like North Carolina, any opportunity to add homes to your search increases the chances of finding the right property. Considering foreclosures is a good way to expand your search possibilities.
â Room to build in equity
Since many foreclosures have issues or have been neglected in some way, there’s often an opportunity to build in equity by renovating or repairing the home.
For example, you might buy a foreclosure for $150,000, spend $25,000 renovating it, and it could be worth $190,000 after all the work is done â that’s $15,000 of equity you just created!
â Faster buying process than some states
â No redemption period
Don’t Miss: What Is Exempt From Bankruptcy In Idaho
Get The Home Appraised If You Plan To Finance It
If you need financing to buy a house, you’ll need to show the lender that the investment is worth it â that’s where appraisals come in.
» MORE: Find out what appraisals are and if you need one
If the appraisal comes in low, you’ll need to come out of pocket for the difference. For example, if you offer $315,000 for a mid-priced North Carolina home and it appraises at $300,000, the lender will only finance $300,000. You’ll need to coverthe remaining $15,000 or renegotiate the sale price.
How Long Does It Take To Buy A Foreclosed Home In North Carolina
If you’re buying a pre-foreclosure or REO with conventional financing, you’ll need an inspection and appraisal, so closing will take at least 30-45 days.
REOs in North Carolina can take 6-18 months just to complete the foreclosure process and reach the REO department.
Auctions have a 10 day period when you can be outbid. After that, you can pay in full and receive the title in days.
Read Also: How Long To Refinance After Bankruptcy
North Carolina Foreclosure Homes For Sale
- Brokered byCarolina East RealtyNew – 3 hours ago
North Carolina Deficiency Judgment Laws
In a foreclosure, the borrower’s total mortgage debt frequently exceeds the foreclosure sale price. The difference between the total debt and the sale price is called a “deficiency.” For example, say the total debt owed is $300,000, but the home sells for $250,000 at the foreclosure sale. The deficiency is $50,000. In some states, the lender can seek a personal judgment against the borrower to recover the deficiency. Generally, once the lender gets a deficiency judgment, the lender may collect this amountin our example, $50,000from the borrower.
In North Carolina, a deficiency judgment isn’t allowed if the loan was a purchase money, seller financed mortgage or deed of trust. .
The lender might also be barred from seeking a deficiency judgment after foreclosure if:
- the loan is nontraditional, like a loan that permits the borrower to defer payment of principal or interest and allows negative amortization of the loan balance, or is a rate spread home loan , and
- the loan secures borrower’s principal residence. .
Read Also: What Is Chapter 13 Bankruptcy Ohio
North Carolina Foreclosure Listings
Scroll down to find North Carolina foreclosure listings of foreclosure homes for sale. Our North Carolina homes for sale database will also include listings of bank owned homes, short sales, sheriff sales and pre-foreclosures. All our North Carolina foreclosure listings are pre-screened for accuracy by our team of professionals on a daily basis. All of our foreclosed properties for sale will also include the contact information, number of bedrooms and baths, square footage and price.