When most people are notified by their lender that their house will soon go into foreclosure, they think all is lost. If a party cannot be personally served, the sheriff can serve it by posting a copy of the notice in a conspicuous place and manner upon the real property. Nearly a quarter of the Country’s mortgages have interest rates scheduled to reset this year or next year which means higher payments for millions of homeowners.
Up until the time your home is scheduled for auction, most lenders would rather work out a compromise that would allow you to get back on track with your mortgage than take your home in a foreclosure. Once you file a bankruptcy petition, federal law prohibits any debt collectors, including your mortgage lender, from continuing collection activities.
For example, if you owe $6,000 in missed payments and the bank may allow you to make payments of $500 a month over the next 12 months to cure the loan. Once scheduled, the foreclosure sale date can later be postponed or canceled by the lender. Following the sale, the owner must move out of the property within 10 days of the sale.
In general, there are eight events involved in a foreclosure (in this example, we assume the borrower has obtained a mortgage for a house from the lender ). Also called a Notice of Default (NOD), or lis pendens(suit pending), the public notice is a written notification to the homeowner that the lender will pursue legal action if the debt is not paid.
7. The lender puts the property up for sale and publishes a notice of the sale in the local paper. The clerk of superior court may enter an order allowing a trustee to proceed to sell the real property according to the sale procedures set forth in the North Carolina General Statutes.