Foreclosures in Charlotte NC—Foreclosure Process and Timeline

Foreclosure process and timeline can vary from state to state but in this post, let us focus on foreclosures in Charlotte NC. The difference can range from the notices that need to be posted or sent through mail and the schedule regarding when the property will be auctioned.

Two Types of Foreclosures in Charlotte NC

Foreclosures in Charlotte NC

Photo Courtesy of Casey Serin via Flickr

There are two common types of foreclosures in Charlotte North Carolina: judicial and non-judicial. Foreclosure can either be judicial or non-judicial depending on the clause used in the contract which is the document that governs any agreement between the lender and the borrower.

1. Judicial

Judicial foreclosures are followed when the mortgage serves as security for the loan of the property. Before a foreclosure sale can be allowed, a court proceeding must still take place. When there is a problem with the title of the property, it automatically goes to the court. After a lawsuit has been filed to obtain a court order for the foreclosure sale, the sale process will then be directed by the court.

2. Non-judicial

When deed of trust is used as security instruments, non-judicial foreclosure is followed. It is the most common proceeding especially when there is a clause in the contract that allows the lender to sell the property in case of default from the borrower.

Timeline for Foreclosures in Charlotte NC

Foreclosure timeline typically is three to four months in Charlotte North Carolina. After you miss a payment, you can expect that your lender will already contact you.

1. First month

After missing a first payment, you can expect that your lender will already remind you that you are already missing a payment. As much as possible, you should not allow the situation to worsen otherwise you will be in trouble. You have to remember that time flies and before you know it the default is already on the second month.

2. Second month

After you have missed the second payment, your lender will definitely be calling you constantly. It’s important that you don’t avoid the calls because this is an opportunity for you to explain to them your situation. If it’s possible that you can make payment for the previous month, do so, so that your default will not make it to the third month.

3. Third month

After you have missed the third mortgage, the lender will then give you a “Demand Letter” or a “Notice of Accelerate” telling you that you have 30 days to make your mortgage current. Remember that if you ignore this letter or fail to come up with the amount to make the mortgage current or make some arrangements with your lender, foreclosure proceeding will then commence.

4. Fourth month

After missing the fourth mortgage, you have to remember that at this stage, you are also at the end of the time allowed by the “Demand Letter” or a “Notice of Accelerate” to make good your mortgage. If you have not paid the default payments and have not made some sort of agreement with your lender, you will then be referred to their attorney who will in turn schedule a sale of your property. You will be notified by mail or a notice will be placed at your door. The time between the Demand Letter or the Notice and the actual sale will be 3-4 months.

Redemption Period for Foreclosures in Charlotte NC

After the date of the sale you will enter a period of redemption wherein you are given the time to redeem your property even if it has already been sold at a foreclosure sale. In order to redeem, you have to pay all outstanding mortgages and all costs that were incurred during the foreclosure proceedings.

These are some of the important points that you need to keep in mind regarding Foreclosures in Charlotte NC.

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