Foreclosure options in NC
With the recent resignation of Rob Cordray who was head of the Consumer Protection Financial Bureau it is prudent to expect eh banks may not face as much government regulation going forward. Less regulation often leads to abuse as evidenced by Wells Fargo recently admitting to the practice of opening fraudulent accounts for customers who never asked for them.
Although the days of robo-signings may appear to be in the rear-view mirror there is always the opportunity for abuse and error by large banks who are more interested in the bottom line than protection of their customers. Foreclosure Defense in North Carolina is already an uphill battle for consumers versus the banks because the law is written to favor the banks. Actual fraud by the bank is not even admissible at the foreclosure hearing- all the clerk is going to examine is the debt, default, notice to the borrower, and the right to foreclose provided in the note. Whatever loan modification the bank may have promised, but failed to deliver is not even considered at this hearing. |
In North Carolina, a delinquent home owner should be mailed a pre-foreclosure notice upon default with an approximate payoff and reinstatement amount. If you receive this notice you should expect an actual foreclosure in imminent. Speaking with a lawyer and asking for a loan modification packet at this point is a prudent next move.
Once a foreclosure is filed the bank will instruct a substitute trustee (a neutral party- paid by the bank in reality) to file the required paperwork at the county courthouse. A foreclosure must be served on the borrower either by Sheriff, certified mail, or the Sheriff posting hte notice to the front door of the property. If the property is a rental unit or the owner doesn't live there this means sometimes the borrower never receives actual notice!
TWO FORECLOSURE DATES:
Once the clerk approves the sale the lender must advertise in the local paper of the scheduled sale date. The bidding usually takes places in the lobby of the local courthouse. Even after the sale date as stated above the bidding period remains open for at least 10 days before any sale is finalized. If an upset bid is made during this period the 10 day upset period is reset. Once the sale is finalized the trustee will execute a trustee deed to the new owner or the bank if there were no bids by third parties. Upon execution of a new deed any homeowner still living in the home is on borrowed time. The new owner can immediately apply for a writ of possession to have any holdovers removed from the premises. Basically you don't want to be caught at this point as removing your stuff with no notice can prove difficult to impossible.
At Witt Law Firm, we are committed to keeping you in your home whenever possible. We offer consultations for both foreclosure defense, loan modification, and even bankruptcy. Please give us a call sooner rather than later as options become limited closer to the sale date.
Once a foreclosure is filed the bank will instruct a substitute trustee (a neutral party- paid by the bank in reality) to file the required paperwork at the county courthouse. A foreclosure must be served on the borrower either by Sheriff, certified mail, or the Sheriff posting hte notice to the front door of the property. If the property is a rental unit or the owner doesn't live there this means sometimes the borrower never receives actual notice!
TWO FORECLOSURE DATES:
- Hearing date- make sure you attend this hearing and ask for a continuance.
- Sale date- The bidding period only remains open for 10 days.
Once the clerk approves the sale the lender must advertise in the local paper of the scheduled sale date. The bidding usually takes places in the lobby of the local courthouse. Even after the sale date as stated above the bidding period remains open for at least 10 days before any sale is finalized. If an upset bid is made during this period the 10 day upset period is reset. Once the sale is finalized the trustee will execute a trustee deed to the new owner or the bank if there were no bids by third parties. Upon execution of a new deed any homeowner still living in the home is on borrowed time. The new owner can immediately apply for a writ of possession to have any holdovers removed from the premises. Basically you don't want to be caught at this point as removing your stuff with no notice can prove difficult to impossible.
At Witt Law Firm, we are committed to keeping you in your home whenever possible. We offer consultations for both foreclosure defense, loan modification, and even bankruptcy. Please give us a call sooner rather than later as options become limited closer to the sale date.