FREQUENTLY ASKED QUESTIONS (FAQ)

Foreclosure Solutions in North Carolina

Question: What is foreclosure?

Answer: Your home is collateral for your mortgage loan, and the Deed of Trust (mortgage) that you signed at your loan closing gives your lender certain rights to sell or take ownership of your home if the loan isn't repaid as agreed.  Foreclosure is the legal process a lender uses to recover money owed by selling or taking ownership of the property. We help homeowners to navigate the foreclosure process and find solutions that are better for them than simply allowing their mortgage lender to take their home.  

Question: Is foreclosure automatic after missing a few payments?

Answer: No. Foreclosure is a process, not an instant event. Missing payments can lead to default notices, hearings, and eventually a sale, but homeowners often still have options — especially early in the process.

Question: When should I seek help?

Answer: As early as possible. The earlier you act, the more solutions may be available. Waiting until a foreclosure sale is scheduled can severely limit your options.

Question: What is forbearance?

Answer: Forbearance allows your lender to temporarily pause or reduce your mortgage payments during a financial hardship.

• Payments may be paused or reduced for one month up to a year

• Interest typically continues to accrue

• Missed payments must be repaid later or at the end of the loan

Contact us to discuss the pros/cons of forbearance.  

Question: What is a loan modification?

Answer: A loan modification permanently changes the terms of your mortgage to make payments more affordable.

Common changes include:

• Lowering the interest rate

• Extending the loan term

• Adding past-due amounts to the loan balance

Question: What is reinstatement?

Answer: Reinstatement allows you to catch up on your mortgage by paying everything owed at once.  Reinstating the loan will stop the foreclosure because you'll be completely caught up on your payments. 

Question: Can I sell my home to avoid foreclosure?

Answer: Yes — if you have enough equity to pay off the mortgage and selling costs, you can sell your property to pay off your delinquent mortgage, thereby avoiding foreclosure.  You may even be able to get cash from the sale, depending on how much equity you have.  

Question: What is a Short Sale? 

Answer: If your mortgage balance is higher than the sales price of the property, you may be able to conduct a short sale.  Short sales require that you request that the bank accept less than what they are owed so that you can sell the property.  Short sales generally require an approval process and a valid hardship.