Raleigh North Carolina Foreclosure Help, Defense, Laws and Process

 


The North Carolina foreclosure law states that the sale of real property under a power of sale clause incorporated in any mortgage or deed of trust selected orally in the presence of an attorney shall be valid. Taking up mortgage help to purchase property is one way of acquiring property. However, sometimes due to financial constraints, repaying the loan might become tricky leading to foreclosure.

Stop Foreclosure in Raleigh, North Carolina

The foreclosure process takes approximately three to four months. In North Carolina, both court and out of court procedures are used to solve foreclosure cases. In the court system, foreclosures go through the courts especially when there are title deed problems. To obtain a court order, a lawsuit is filed and the sale process is controlled by the court.

In most cases, out of court procedures are the most common. It comes into effect when a clause is present in the mortgage that gives the lender the right to sell the property should the borrower default. Before the sale is conducted, an initial hearing is conducted before the start of the foreclosure process.

The lender posts the notice of hearing to the debtor . The county clerk conducts the hearing to decide on whether the foreclosure sale will take place. When faced with such a situation, seeking government help in ample time will come in handy. Some advice agencies present in the state offer legal representation to those in the risk of facing foreclosure.

There is a specified procedure that is followed when the deed of trust contains the power of sale clause. A notice of sale must include the names of all the concerned parties, a legal depiction of the property and the location of the sale. The lender posts the notice to the debtor and other concerned parties at least 20 days before the sale date.

The lender is also supposed to print the notice in a local daily once a week for two consecutive weeks. A copy of the notice is also posted on the courthouse 20 days before the actual sale. Property is sold to the highest bidder.

A ten day redemption period for the debtor is available after the sale. At this point, you should consider talking to your financial institution to give you a loan modification that will help offset the debt. An upset bid may be entered by any party whereby a 5 percent of the bid is given to the county clerk.

Raleigh, North Carolina Foreclosure Process

Judicial foreclosure comes into effect when the power of sale clause in the loan document gives authority to the lender to sell the property should the borrower default. For the lender to obtain an order to foreclose, he must sue the defaulter. However, avoidance of foreclosure might be possible if one files for bankruptcy.

In non judicial foreclosure, the clerk of the court holds a meeting to determine if a foreclosure should take place. If the clerk finds that the foreclosure should take place, the process is as follows:

  • A notice of sale must first be posted to the borrower, printed in the local daily for two weeks not less than ten days before the sale date.
  • The sale takes place at the local courthouse through a public sale. The sale remains open and bids may be filed with the court clerk for ten days after the sale date.
  • In case of a postponement, the notice is posted on the courthouse door stating the new venue and time.

Most financial institutions require you to repair credit before your next loan application. This done in good time might save you from facing foreclosure in the future.