I'm in Foreclosure...Now what?

From what we are hearing, the 2011 slowdown of foreclosures is over. Many of the large banks are gearing up the foreclosure machine once again, which means many of our clients will receive the unfortunate news that the bank wants their home. ​

In you are still pre-foreclosure it is important to request a loan modification early in the process rather than wait until after they have tacked on another $2,000 in attorney fees related to foreclosure. 

In North Carolina, a delinquent home owner can expect to receive a payoff statement before the actual foreclosure begins. When you receive this, you can be sure the foreclosure process has begun. A payoff statement is a legal requirement that simply provides you with the total amount owing on the mortgage. Thereafter, the lender will instruct a substitute trustee (essentially, a neutral middle man) to start the foreclosure proceedings. Typically (and unfortunately), that means that the Sheriff will deliver a Notice of Hearing to your door (you may also receive notice via certified mail or notice may simply be posted on your front door).

Important Foreclosure dates

1. Foreclosure hearing date 
2.  Foreclosure sale date 

The good news is that the Sheriff won’t lock you out or otherwise kick you out of your house until AFTER the sale date, which is typically about 25 days after the hearing date. Realize, however, that short of the lender agreeing to extend one or both of these dates, one of your only ways to save your home may be filing a Chapter 13 bankruptcy. Chapter 13 bankruptcies take time to do, so you should contact a knowledgeable bankruptcy attorney as soon as possible. 

Witt Law Firm, P.A. can help you with foreclosure defense in conjunction with their extensive bankruptcy knowledge and experience. We offer free initial consultations for potential bankruptcy clients, so please do not hesitate to contact us and learn about bankruptcy and how it can help you. ​