The foreclosure process is not just stressful for homeowners but also for banks or lending institutions. Most lenders will propose loss mitigation options to you as soon as they discover you’re having trouble paying your mortgage. The act of going through loss mitigation before initiating foreclosure is mandatory in some states. However, it is up to you to maximize the offers given to your advantage. Some of the loss mitigation options include loan modification, refinancing, deed in lieu, short sale, etc.. Talk with your lawyer to know which is best for you.

North Carolina uses a non-judicial foreclosure process, which means your lender doesn’t have to go to court before selling your home, except you file a lawsuit against them. Non-judicial foreclosure is usually faster than the judicial foreclosure process, which is why you must act fast. However, if you find out that there is unfairness in how you’re being treated and your home shouldn’t be on foreclosure, you can file a lawsuit against your lender. Hire a lawyer familiar with state laws and foreclosure procedures in your state to go through your defenses and help you file a lawsuit. The foreclosure will be put on hold until the case is settled in court.

You should know about laws guiding foreclosure in North Carolina; you must know that deficiency judgment is not allowed. If your home is sold at a price lower than the amount you owned, your lender does not have the right to sue you for the remaining amount. Your lender will have to bear the loss. Another thing is that you are permitted to redeem your home after it’s been sold. Once a foreclosure sale has been concluded, you will have ten days to pay off your loan plus additional charges to redeem your home. Knowing your rights helps you develop a winning strategy to stop foreclosure.

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