If you’re reading this, then it’s likely that you are looking for a way to stop foreclosure in Charlotte. The good news is that there are many things you can do to help save your home! However, the first thing on our list should understand what foreclosure is and how it works. Foreclosure occurs when a mortgage borrower fails to make payments on time and as agreed upon by contract. This means that they have stopped paying their monthly mortgage payment or missed one altogether. To stop foreclosure in Charlotte, we have compiled a guide below to help you navigate this sticky situation.
What is a foreclosure?
A foreclosure is when a lender takes away the borrower’s collateral (most often their home) in order to repay debts. Foreclosure can happen if you stop paying your mortgage or don’t pay it on time, but it also happens if you fall behind and are unable to catch up with payments after missing one. Unfortunately, a lot of good people can easily get behind in their mortgage payments and end up in foreclosure.
Getting behind on your mortgage payments, however, doesn’t mean you need to stop paying them. You can still save your home by making up the missed payments or refinancing into a loan that you can afford.
What circumstances Usually Lead to Foreclosure
Foreclosure usually occurs due to a few common factors that we often see. This can include:
- Divorce – If a married couple gets divorced, the divorce court will divide up assets and debts fairly. If one person has more equity in their assets or debts will be split according to their state laws.
- Medical Emergency – A surprise medical emergency can put a large unexpected stress on your finances.
- Loss of Job – Sudden shift in the economy can result in downsizing in multiple industries. No longer employed means no more regular paycheck.
- You stop paying your monthly mortgage payment because you don’t have any other resources available.
- There is a high unemployment rate where you live, which has led to an increased number of people with mortgages that they can no longer afford.
If one or more of these factors apply to you, it may be time for some serious introspection. Another thing we recommend is talking about what’s going on with somebody who knows how best to help. Talk honestly and openly about why foreclosure could happen in Charlotte, North Carolina if your loans were based largely on assumptions that ultimately did not come true:
- Unrealistic expectations by borrowers
- Inflated real estate values
Foreclosure prevention programs in Charlotte, NC
There are a few programs that we offer that can help stop foreclosure.
If you need to speak with a counselor about your financial situation or the programs they offer, please contact them at 1-888-442-8188. When it comes to protecting your home and preventing foreclosure from happening, don’t be afraid – call today! Our counselors will tell you everything you need to know about avoiding going through what many Americans have gone through in recent years.
Take Inventory Of Your Situation
The first step to assessing where you are at with foreclosure is to take inventory of all the property you own. This includes your clothes, jewelry, and even toys from childhood. When faced with foreclosure in Charlotte, it’s better to act swiftly than regret later when time starts running out.
The important aspect here is to total up your assets and see if you can make catch-up payments on your mortgage. This will help determine what steps to take next and if it is worth fighting for your home or defaulting and going through the foreclosure process. In some cases, it may be better for you financially declare bankruptcy and go through foreclosure.
Contact your lender or loan servicer for more information about how to stop foreclosure and keep your home
Often the best way to keep your home is to work directly with the loan service provider that services your mortgage. Banks are increasingly incentivized to keep your property because they often lose a lot of money in a foreclosure situation.
Other Options to Navigate Foreclosure
Your lender may approve a short sale if they believe they can make more than through foreclosure. The typical requirements for approval are that you show financial hardship or considerable loss in home value.
The short sale process can be quite long and tedious. Your house will be offered to qualified buyers at an auction for a discount. However, you can often sell your house much more directly to a home buyer, such as Connect.
Being able to reinstate your mortgage requires a lot of money since you will need to catch up on all of your past due payments, in addition to any late fees incurred. Therefore, this option is a tricky one and may require that you borrow money just for the chance of reinstatement.
You can speak to a loan officer from your lending institution about applying for a loan modification if you’re experiencing financial hardship or have a high debt-income ratio. By getting this, you may change the terms of the loan. For example, in some cases, past delinquent amounts will be added to the current balance, and your monthly payments extended, which may lead to lower monthly payments in the long run.
Lease or Assumption Loan
Getting your lender to approve an assumption loan is possible; this option is where you work with another buyer to assume the responsibilities of making payments.
There are numerous governmental programs designed to prevent foreclosure. The program you qualify for will depend on your ability to prove financial hardship. Programs include: Home affordable refinance program (HARP), Second lien modification program (2MP), Home affordable modification program (HAMP), Principal reduction alternative (PRA)
If you need to put off your mortgage payments due to a short-term situation, this option allows you to skip payments for a short period of time. For example, this method can be useful if you are between jobs and expect a short-term income reduction each month.
Deed Instead of Foreclosure
You give your deed back to the lender instead of having your home foreclosed. The bank will try to make back their investment, and you will walk away without a foreclosure on your record.
Work with an Investor
Working with a real estate investor or professional home buyer can shortcut and simplify the foreclosure process. Investors can make extremely fast and simple transactions that can benefit both the seller (you) and the buyer (investor). They are also very knowledgeable about local real estate laws and have connections with local lawyers, bankers, accountants, title companies, and realtors (all of which could benefit you during the entire process). You can find a local investor in Charlotte North Carolina, by searching “we buy houses Charlotte NC” or “professional home buyers in North Carolina.”
Connect with a local investor
Looking for a one-stop shop to end foreclosure and get free professional assistance. Working with a local investor may be a good option. Ask a few local realtors if they know any reputable investors or professional home buyers. We recommend you do your research; real estate investing is unregulated and sometimes attracts unprofessional home buyers and investors. Ask to see if they have past customer reviews or are accredited by the Better Business Bureau.
How Can Connect Partner With You?
Connect Home Buyers is a local company dedicated to offering professional, free help to struggling homeowners. Even if your home has many repairs needed or there are back taxes owed, we can help! Please fill out our form below with your information or give us a call at 704-285-0982 for an instant response. We have helped hundreds of homeowners keep their houses from the bank, attorneys, and offer predators. Click here to get started, or click here to learn how it works.