What Options Do You Have If You Are In Foreclosure In Charlotte North Carolina

March 13, 2010 - PRLog -- I’m In Foreclosure In Charlotte North Carolina. What Options Do I Have?

The more equity you have in your home the more options you will have to choose from to "avoid foreclosure in Charlotte North Carolina." The less equity you have the less options you have. It’s really that simple but let’s look at your options in detail.

You could:

   * make up the back payments and pay the penalties and interest
   * sell your property
   * refinance the mortgage
   * do a loan modification
   * workout a Forbearance Agreement
   * do a short sale

Make The Back Payments if you can then you should do so quickly before any other penalties and interest are assessed.

Sell or Refinance the property. This depends on how far behind you are and how much equity you have. Determining the actual amount of equity will determine your course of action. If you realistically have enough equity, a timely refinance through a mortgage broker or a conventional sale through a realtor may net enough to payoff the lender before you get foreclosed. However, most people in foreclosure these days are in a “zero or negative equity” situation as a result of plummeting real estate values in North Carolina. Therefore a refinance or conventional sale is rarely an option.

Do a Loan Modification This may be a possibility if it works but there are two problems.

First the lenders are not quick or flexible in their accommodations. They often take many months to assign your file to a specialist at which point you are so far behind there’s often no working things out. They typically want to adjust the interest rate by such a minimal amount it won’t help you. In addition they rarely ever adjust the principle of the loan down as we so frequently heard talk and promises of around election time. In fact lenders typically raise the principle to include all missed payments, penalties and interest. Worse yet they often want to extend terms from 30 years to 40 years. Shamefully, if you do the math they are actually making significantly more on the loan than with the original terms.

Second the offer of loan modifications has created a niche market for every scam artist since Bernie Madoff. BEWARE of the “foreclosure avoidance” or “foreclosure rescue” scams that charges upfront fees, or any fees before, during or after the process for that matter.

Forbearance Agreement I also refer to a Forbearance Agreement as the lenders last stitch effort to squeeze as much money out of you as possible before taking your house back through a foreclosure. A forbearance agreement simply takes ALL your missed payments, penalties and interest, ads them together and divides them by either the 12 or 18 months term you’ve agreed to. It works like this. Say your mortgage payment is $1,000 per month and you haven’t made your payment in 6 month or $6,000 worth of payments. The lender will now take those missed payments, divide the number by 12 months in a year (which is $500 in this case) and tag it onto your regular mortgage payments. With the example above your $1,000 per month payments that you couldn’t make in the first place just became $1,500 per month for the next year. How does that work for you? It doesn’t.

In addition most all Forbearance Agreements have fine print which allows the lender to pick up exactly where they left off in the foreclosure process if you fail to make your payments. They do not need to start the foreclosure process all over again. So as I said, A Forbearance Agreement is the lenders last stitch effort to squeeze as much money out of you as possible before they foreclose.

Short Sale A short sale is when the lender (the mortgagee) agrees to accept as full payment an amount which is less than the actual mortgage payoff balance that is due from the Homeowner (the Mortgager) to fully satisfy the loan. If you have no equity you need a short sale and you should "contact us today." In a short sale the lender pays all the expenses incurred in the sale of the property. These expenses include the Realtors commission, title fees, transfer fees, and every other chargeable expense found on the HUD statement.

A short sale needs to be negotiated by "a professional real estate buying company experienced in this area." When successful you will avoid a foreclosure on your permanent credit record. On The Spot Home Buyers, LLC is a group of real estate professional highly experienced with all avenues of purchasing distressed properties in and around the Charlotte Mecklenburg area of North Carolina. We also help distressed home owners in Iredell, Cabarrus, Union, Gaston and Wake Counties North Carolina. Contact us today for your Free no obligation consultation and see how we can help you.

Please visit us at:                                      http://www.MecklenburgHomeBuyers.com
We also buy Central Florida Homes     http://www.OnTheSpotHomeBuyer.com

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We are professionals home buyers who know Charlotte and North Carolina real estate and the processes involved in foreclosure. We provides valuable alternatives to people who are behind on payments or facing foreclosure in Charlotte North Carolina.