Foreclosure Process & Time-line Charlotte North Carolina

Two Types of Foreclosure Procedures

The foreclosure process is different in every state. Differences range from the notices that must be posted or mailed and the scheduling and notices issued regarding the auctioning of the property. There are basically two primary types of foreclosure procedures, which include judicial and non-judicial. Judicial procedures are followed by states that use mortgages as the security vehicle for property loans. Non-judicial procedures are used by states that use deeds of trust as the security instrument.

The mot common type of foreclosure proceedings are done out-of-court and occur when there is a clause in place that allows a lender to sell the property if the homeowner defaults on the mortgage. Before a power of sale foreclosure can take place, a preliminary hearing is conducted. When there are title problems, foreclosures automatically go through the courts. The foreclosure sale process is directed by the court after a lawsuit is filed to obtain a court order and the foreclosure sale process is directed by the court.

Foreclosure Timeline

A typical foreclosure time-line is approximately three to four months. However, foreclosure time-lines vary form sate to state so know your own state’s laws.

Month 1: You miss a payment. At this point your lender will contact you either by letter or phone.

Month 2: You missed your second payment. Your lender will now start calling to inquire why you have missed two consecutive payments. It is important not to dodge their calls! You want to talk to your lender and explain your situation and why you are unable to make your payments. If you can make at least one payment, you can prevent yourself form falling three months behind on your mortgage, which will put you into delinquency status. Not good!

Month 3: You missed your third payment. You will receive a “Demand Letter” or Notice of Accelerate” from your lender letting you know that you have 30 days to bring your mortgage current. If you ignore the letter, fail to pay the amount due or make some type of arrangements by the given date, the lender can begin foreclosure proceedings. More than likely they will require the total due without payment arrangements. However, at this state, you still have time to work out some sort of payment arrangements with your lender.

Month 4: You missed your fourth payment. At this stage you are near the end of time allowed in your Demand or Notice to Accelerate Letter. If you have not worked out any sort of payment arrangements or paid the full amount due, you will be referred to your lender’s attorneys. All attorney fees will be assessed and tacked onto what is due. At this point the attorney will schedule a sale of your property which will be the actual day of foreclosure. A notice of the date will be taped to your door or you will be notified by mail. The sale may also be advertised in a local paper. The time between the Demand or Notice and the actual Sale is different for each state. It can be as quick as 2-3 months in some states.

Redemption Period

After the sale date, you may enter what is a called a “redemption period.” This is the period after your home has been sold at a foreclosure sale when you can still reclaim your home.  However, you will be required to pay the outstanding mortgage balance including all costs incurred during the foreclosure process. Time lines and foreclosure procedures can vary from state to state and the foreclosure redemption period is often determined by whether the foreclosure is judicial or non-judicial. You can visit North Carolina.org  for the facts on North Carolina foreclosure Law.

Leigh Brown, Foreclosure Real Estate Expert

For more information on foreclosure time-lines, foreclosure scams, or ways to purchase a foreclosure property in Charlotte North Carolina, please contact Leigh Brown,  foreclosure real estate expert of Charlotte, NC.