​Old debts are big business. In fact, some actual judgments currently on the books do not even arise out of legitimate debts at all. Just recently Fredrick J. Hannah & Associates a law firm in Georgia agreed to pay $3.1 million after being sued by the Consumer Protection Financial Bureau (“CPFB”). They were essentially accused of running a collection mill. The lawsuit further alleged the law firm was run like a factory filing cases by the thousands with little review. The CPFB claims one attorney approved 130,000 lawsuits in two years. These lawsuits allegedly involved some of the largest banks including JP Morgan Chase, Bank of America, Discover, and Capital One filed in multiple States including North Carolina.

​Cash for keys is where a homeowner is paid money to voluntary move out, usually after foreclosure. This is often a last resort for homeowners after a Deed in Lieu or Short Sale was denied. The money is generally paid by the mortgage holder or new owner after the foreclosure sale. Banks are under no obligation to offer you any money to leave and can proceed immediately to eviction after foreclosure. That being said there is no harm in asking your lender if cash for keys is a program they offer. Even if you are told no early in the process you should call back later as policies can change once your loan is transferred to a new department. If you are considering this option then it is almost always best to inquire early rather than wait, although some banks won’t even discuss “cash for keys” until after they know they are stuck with the property when nobody bids at the foreclosure sale.

A Short Sale is where the mortgage holder agrees to release their lien to allow a house to be sold for less than what is owed. This does not always mean they forgive the balance of the loan, although sometimes that is part of the negotiation. Short sales are one of many alternatives to foreclosure. Although no bank is required to approve a short sale, there is no harm in asking if they will consider this option, especially if you are denied a loan modification and are facing foreclosure.

​A deed in lieu of foreclosure is when a homeowner voluntarily signs a deed giving the property to the bank. This saves the bank the time and expenses associated with the foreclosure process and saves the homeowner the foreclosure on their credit report. There are many pros and cons to considering whether a deed in lieu is best for you. One of the main considerations is if you have somewhere to move and the amount of equity or lack thereof in the property.

Are you a low-income homeowner who is disabled or elderly? Are you a disabled veteran who owns a home? Under North Carolina law, you may qualify for property tax relief that could save you up to one-half of your annual real property tax bill.  ​

​If you would like free assistance in determining your eligibility and in obtaining the necessary application, please contact Maria McIntyre of the Financial Protection Law Center at (910) 442-1010 between the hours of Noon and 4:30 pm, Monday through Friday. As the application must be submitted to your local County tax office by June 1, 2014, please call soon for details.