Triangle Area Foreclosures
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The Linda Craft team is committed to helping you understand the foreclosure process, whether your Raleigh home is in jeopardy of going into foreclosure or if you want to learn more about buying a Triangle area foreclosure home. Simply select the option that suites your real estate needs:
Linda Craft and Team understand that the Raleigh real estate market can be difficult for home owners today. That's why we want to help you understand the ins and outs of foreclosures. In light of today’s economy, foreclosure is a term often mentioned especially in the news media that creates a considerable amount of mystery and fear. The concept of "foreclosure" is frequently misunderstood too. Here you will be empowered with information that will remove any misunderstanding and demystify this term. Also included are a few associated terms often used in the foreclosure process.
What is Foreclosure?
Understanding the concept of foreclosure is helpful especially if you find yourself facing a foreclosure situation. No matter what happens, always contact your lender as soon as you realize you can not fulfill your commitment to pay your mortgage payments. It is also recommended you communicate often with your lender if you are faced with losing your home in a foreclosure proceeding!
Foreclosure defined: Foreclosure is defined as a legal proceeding which culminates in a lender-appointed trustee selling or repossessing the home of a borrower who has failed to keep their commitment to pay their mortgage payment in a timely fashion according to the stipulations of a promissory note.
What follows is a series of events that begins once a homeowner defaults -- or stops making their mortgage payments. There are many root causes of a foreclosure including life crisis events such as a job lose, a death, a disability, an illness, a divorce, or because the loan payments have increased beyond the homeowners ability to pay them. This is often the case with previously issued “sub prime” loans. Many previously issued sub prime loans were predicated on an adjustable rate mortgage that came with steep adjustments. Often these severe adjustments can make the monthly payments difficult for the homeowner to pay. The series of events ends when the deed of trust holder (trustee) sells the home at auction, or takes the home back from the owner.
Foreclosure begins when the homeowner is at least 90 days behind on their mortgage payment. Typically, the homeowner will receive a series of notices in the mail. Some may even be posted on the front door of the property. These notices outline the options homeowners have. They include: (1) either bring the past due mortgage current or come to some compromise with the lender, or (2) the “acceleration clause” will grant the trustee the legal right to have the home sold in a foreclosure sale and the homeowner will be forced to move out.
Who Holds the Deed of Trust in NC?
In North Carolina, the trustee holds the deed of trust. When the property is in default the “acceleration clause” gives the trustee the legal right to call the entire sum of the loan owed due and payable immediately upon default of the loan. The “Power of Sale Clause” in the deed of trust gives the trustee the power to foreclose on the property if the loan is in default. The trustee will then advertise the sale of the property for 30 days at the county courthouse and he/she will also advertise the foreclosure sale in a local newspaper for the “statutory period”. Some trustees simply take ownership and place the home on the market. These properties are often referred to as “REO’s” or “Real Estate Owned” by a bank or other financial institution.
Important Point to Raleigh Home Buyers!
The foreclosure process is a series of phases that occurs with a "distressed" Raleigh property. During your Raleigh home search, you might encounter a foreclosure property whose current ownership status is all over the foreclosure process. Each place within the process presents a different set of considerations –those considerations include legal issues, logistical issues and negotiation issues. All or any one of these could impact how desirable (or undesirable) a Triangle property might be to you, as a Raleigh home buyer. For this reason, it is critical you select a knowledgeable Raleigh real estate agent team to help advise you through these unique home buying opportunities.
The Bottom Line for Raleigh Home Buyers
When you buy a home for sale in Raleigh using mortgage money, you are making a promise to repay the mortgage loan. Should you decide to stop paying your mortgage payments for more than a 90-day period of time; the lender will advise the trustee to set the legal wheels in motion to take the home back. This process is collectively called a "foreclosure."
Would you like to know about Raleigh foreclosure homes? Contact Linda Craft and Team today for your home buying needs.