The Foreclosure Process
Provided by Tom Luzon/OnTrack Financial Education & Services
1.
Foreclosure process in North Carolina
A.
Homeowner falls behind on a mortgage payment
1.
Mortgage lender attempts contact
2.
Do not avoid lender contact
3.
Best time to work out an affordable solution with the lender
4.
Arrears and fees are less
B.
Lenders next step is to mail a notice of acceleration
1.
Lender is exercising their right to call the loan due
2.
Not too late to talk to your mortgage lender
C.
Agreement Not Reached, A Notice Of Hearing And a Sale
Date Sent
1.
The hearing usually 3 to 4 weeks later
2.
Sale
date 3 to 4 weeks after the hearing
3.
Still not too late to work out plan with the lender
4.
Timing critical; additional fees now incurred
D.
The Hearing
1.
Attorney named the Trustee appears for the lender
2.
If the Clerk decides to proceed, the sale date will be set
3.
Until the actual sale date, still not too late to work out a plan
4.
Attorney s advice recommended
II. Perspective of the Lender
A.
Lender Does Not Want Your Home!
1.
Lenders are in business to make loans, not in real estate business
2.
Foreclosure is a losing proposition for a lender
B.
Mortgage lenders make money by making new mortgage loans
C.
Lenders are willing to work with you
1.
They want to be sure that you can afford the mortgage and the repayment plan, and avoid the risk of foreclosure again in the future
2.
Lenders want to be paid back and cure the loan as soon as possible,
3.
Lenders will agree if a plan that makes sense and gives the lender confidence of the borrower s ability to make payments in the future
III. What are the options to stop the foreclosure?
A.
Repayment Plan
B.
Loan Modification
C.
Short Sale
D.
Deed in Lieu of Foreclosure
E.
Partial Claim/Special forbearance
F.
VA Refunding
G.
The NC Home Protection Program
H.
Reverse Mortgage Loans
I.
FHA Secure
J.
Refinancing
K.
Sale
of the Home
IV. Legal Solutions
V.
What is the role of OnTrack??
A.
OnTrack, a HUD-approved housing counseling agency, acts as intermediary
B.
OnTrack assists in the negotiation with the lender and helps the client prepare the workout package for the lender.
C.
OnTrack provides crisis intervention housing counseling:
1.
Intake and assessment
2.
Data gathering
3.
Review loan documents
4.
The counselor will contact the mortgage lender with the client
5.
Repayment terms negotiated based on what the client can afford
6.
Follow up and follow through to completion
VI. What Steps do I Take?
A.
First, consider if you want to keep the house and can really afford it.
B.
Next, gather documentation that your counselor will need to review:
1.
Your latest pay stubs
2.
Your latest complete bank statements
3.
Your last mortgage statement for any mortgage you have
4.
Your last escrow analysis
5.
any correspondence from your mortgage lender or trustee
6.
All the paperwork from your loan closing
7.
If you have refinanced, then all the paperwork from your original closing
C.
Third, bring your paperwork with you to your appointment
VI.
Coping during this whole process
A.
Create and follow a short-term crisis budget
1.
Eliminate any unnecessary spending
2.
Pay priority payments first
3.
Look for all the possible ways to save money
4.
Don t incur new debt
B.
Take care of yourself and your family
1.
Participate in family and social events as usual (watching costs)
2.
Check in with each other regularly
3.
Exercise, eat right, and sleep enough
4.
Find things in your life to be grateful for
C.
Communicate!
1.
Talk about the issues and worries with family members
2.
Ask for help coping from your support network
D.
Explore community resources that might help
1.
2-1-1, your place of worship, DSS, Manna Food Bank
| 
Equal Housing Opportunity -
Lake Lure Real Estate
2008 All Rights Reserved -
Privacy Statement