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How to Stop Foreclosure in North Carolina

Published July 14, 2022 by Sasser Law Firm
How to Stop Foreclosure in NC

If you cannot make your mortgage payments, the lender will eventually begin foreclosure proceedings on your home to collect the mortgage debt. This can lead to the sale and loss of your home if you don’t act in a timely manner

Contact Sasser Law Firm today if you are a North Carolina resident facing foreclosure or other debt-related difficulties. You can learn more about how to stop a foreclosure from one of our experienced bankruptcy lawyers.

Can You Stop Foreclosure?

You have multiple opportunities throughout the entire foreclosure process to stop foreclosure. Some options will only temporarily stop the lender from continuing with foreclosure, while other options can allow you to permanently resolve your default on your mortgage and avoid foreclosure altogether.

The best way to prevent foreclosure won’t be the same for every case. An attorney can review your unique case and help you determine your options.

Ways You Can Stop Foreclosure in North Carolina

If you are falling behind on your mortgage or have already received notice of foreclosure from the lender, you may have several options to stop the foreclosure:

  • Loan modification You and the lender can negotiate to change the terms of your existing mortgage. The lender may be willing to lower the interest rate, extend the mortgage term and/or recapitalize the loan.
  • Deed in lieu of foreclosure — This is when you agree to turn over your home ownership to avoid going through foreclosure. The lender may agree to forgive any difference between the value of your home and the balance on your mortgage.
  • Redeeming the property You can pay off the mortgage’s outstanding balance. You’ll have to have the money before the foreclosure sale, though. Most lenders are also very willing to allow you to contractually reinstate the loan prior to a foreclosure sale but it may require the payment of various fees that are tacked on to the delinquent payments.

Another way to pause foreclosure proceedings would be to file for bankruptcy. When you file for bankruptcy, an automatic stay is generally entered. This stay prevents any lender from taking or continuing any action to collect on any debt you owe. This includes preventing the lender from filing or continuing to pursue foreclosure on your home.

Chapter 7 bankruptcy could delay foreclosure for a few months, while Chapter 13 bankruptcy could give you a path to resolve your debt and keep your home. At the very least, filing for bankruptcy can give you the time you need to review your options and come up with a plan to save your home.

When Is It Too Late to Stop a Foreclosure with a bankruptcy filing?

While you can take action to stop foreclosure at any point during the process, eventually the foreclosure sale of your home will become permanent. In North Carolina, after the sale occurs there is a 10-day upset bid period. The 10th day cannot fall on a day that the county courthouse is closed such as a weekend or major holiday. This 10-day period resets anytime someone makes a higher bid than the prior high bid. Once the 10 days expire, at 5 pm, it is too late to stop foreclosure with a bankruptcy filing.

Talk to an Experienced Foreclosure Defense Lawyer in Cary, NC Today

If you are worried about losing your home to foreclosure, contact Sasser Law Firm for a free, confidential consultation to discuss your options. We have extensive experience helping homeowners like you prevent foreclosure by filing chapter 13 cases. Contact us by phone or online for help now.

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