Speaker 1: 1:40

Welcome to the Forclosure Chronicles podcast, where we provide and help homeowners that are facing foreclosure with options so that they can make the best decision for their situation or exit the property with dignity. I am your host, amy Ellis, and today I want to discuss the process of foreclosures, in particular, in North Carolina. Let me first state that I am not an attorney, so you may want to get an attorney if you are facing foreclosure. However, I am a licensed realtor in North Carolina. My broker is by Holmes with Rose LLC. Again, I am not an attorney and what I'm presenting here today is just the process, because I was in a mastermind the other day and we were discussing how a lot of homeowners who are facing foreclosure they're not aware of the process and they kind of don't know what to do. You know they're thinking the bank's on their side giving them time, or they're going through the steps thinking that the bank has their back, all to find out that, hey, they have an auction date coming up real soon. So, with that being said, this group, this mastermind, and we are all over the United States of course North Carolina, where I am licensed and help homeowners in we have people in Florida, michigan, chicago, california. So we have them all over the world, excuse me, all over the United States.

Speaker 1: 3:51

But the main thing is the foreclosure process. Depending on which state you're in will dictate what type of foreclosure process that you'll be going through, and there are two types judicial and nonjudicial. And in this episode, I am going to focus on nonjudicial, because that's what North Carolina is, if you are listening and you're not, and you don't have property in North Carolina. First of all, thank you for listening to the Forclosure Chronicles podcast and to use Google to figure out if where your property is located, if it's in a judicial or non-judicial state. So the main thing with judicial is that process is where the lender has to file a lawsuit in court in order to foreclose.

Speaker 1: 4:57

Now, here in North Carolina, the judicial, non-judicial foreclosure. It is a legal process that allows lenders to foreclose on the property without involving the court system, meaning it's not heard in front of a judge. It's typically heard in front of a court, county clerk and, of course, this process is governed by specific laws and regulations to ensure fairness and transparency. Excuse me. The non-judicial foreclosure is typically initiated when a homeowner defaults on their mortgage. The lender, also known as the mortgagee, has the right to enforce the terms of the mortgage agreement and recover the outstanding debt by selling the property. Unlike judicial, like I stated earlier, which involves the court proceedings, non-judicial allows for a faster, more streamlined process and that's probably why you know, if you're about five to six months behind, you start getting all these notices and that saying you know the sheriff's knocking on your door with, excuse me, a right to cure, a letter from the attorney's office and you're like what's going on? And a couple of days, a couple of weeks after that, you have a hearing and then that saying you know, boom, you got a sell date. So that's why the process goes so fast and you probably don't know what to do and or understand. So that's why, again, the non-judicial process for North Carolina, it is going to go a little bit quicker because it bypasses being heard in court. So now the steps that are involved in the non-judicial process.

Speaker 1: 6:55

It's important to note that these steps, of course, may vary slightly depending on the specific circumstances in the terms of the mortgage agreement. However, I'll provide a general overview to give you a sense of what to expect. The first step is the lender is issuing a notice of default. This notice informs the homeowner that they have defaulted on their mortgage payments and provides a specific timeframe within which they must cure the debt. Cure the debt means bring it up to date. If the homeowner fails to cure the debt within a specific timeframe, the lender will proceed with the next steps issuing a notice of sale.

Speaker 1: 7:52

This notice announces the lender's intention to sell the property at a public auction. It includes details such as the date, time and location of the auction. Prior to the auction the notice of sale must be published in a local newspaper for a certain period of time, and that's a law in North Carolina. This publication serves to notify the public and interested parties about the upcoming foreclosure sale. So are you wondering why you're getting all these phone calls, maybe text messages, postcards, letters? Will buy your house quick. We buy your house for cash. We will do a quick close. Well, are you wondering what in the world? How do they know? Let me read that one more time Prior to the auction the notice of sale must be published in a local newspaper for a certain period of time, as required by North Carolina law. Now, is it law that these people that you know, people, advertise to you? No, however, it has to be published and whatever is published, that's made public, is gained for anyone. Excuse me. So, on the schedule auction date, the property is sold to the highest bidder. Of course, the winning bidder must pay the purchase price and cash or certified funds, and if no bidder bidder is found, the property reverts back to the lender where it now becomes an REO or real estate owned property. So that, in a nutshell, is the non-judicial foreclosure process.

Speaker 1: 9:57

So what does that look like on a timeline basis? I know you're like Amy, okay, I kind of get what you're saying, but let's, let's talk the timeline. What does that look like? Okay, again, depending on your circumstance and the type of mortgage person you lender you have, the timeline may vary, okay, but typically it takes around 120 days from the date the first payment is missed to when the property is sold at a foreclosure sale. Again, the timeline may vary depending on several factors, and those factors can include the lender's policies and procedures, of course, the type of foreclosure and the borrower's actions and responses during the process.

Speaker 1: 10:47

Okay, let's remember there are options. Once you have defaulted, you do have options. Okay, of course, if you stay tuned to more episodes, you will figure out and find out what those options are All right. So the timeline day one to 15, you miss a payment, the lender usually sends a notice of default or a demand letter and this also gives you a deadline to bring your account current. Now, granted, day one to 15,. Sometimes it all depends on when I pay period falls. Sometimes we get paid on the first or the 15. So you know, a little slap on the hand. Okay.

Speaker 1: 11:30

So now day 30 to 45, acceleration and notice of sale. Now, if you fail to bring up, bring your account current, you know, from day one and now you are in day 45, the lender will accelerate the loan and this could mean that the entire balance of the loan is due. Excuse me Now. The lender then will file a notice of sale with the county clerk, and this notice will inform you of the time and place of the foreclosure sale. Now again, these timelines and days are. They can vary depending, again, on the situation and circumstances. This is just a highlight.

Speaker 1: 12:18

So now, day 60 to day 105, notice of hearing. The county clerk will mail a notice of hearing to you, the borrower, at least 20 days before the hearing, and the hearing will take place in the county where the property is located and it will determine the foreclosure sale, how the fore excuse me, it will determine whether the foreclosure sale should proceed. Ok, so that's the notice of hearing, day 120, the foreclosure sale. And that's the sale, where it will usually occur at the courthouse steps. And of course, whoever bids on it you know has a process will get it and if it's not sold at the sale or at the courthouse steps, then it will revert back to the lender. Of course there's some more things that go on with this, of course, like if there's someone gets it and then there's an upset bid, let's say, let's say I bought your property, right? Well, I have 10 days after the foreclosure sale before I can actually have that property. So that's 10 days where Joe Smith can come in and say you know what I'm going to outbid her, and he comes in, presents a check, that's, I think, what 10% or more of what I offered, and then now the 10 day clock starts over again and then if I might know I want this property, then I'll go back and bid 10% or whatever the percentage is more to get Joe Smith out the way. So there is a upset bidding process and it typically lasts for 10 days after the foreclosure sale. So that, in a nutshell, is the non-judicial foreclosure process for the state of North Carolina.

Speaker 1: 14:37

Again, I wanted to bring this to your attention as homeowners who are going through foreclosure because, again, like I stated, in our mastermind, we were talking about how these homeowners are clueless. Not saying nothing's wrong with not knowing, but that's why I'm doing this podcast, so I can make you aware of what's going on in the future, to let you know that you have options, let you know that there is a process. It's just not you're getting you know that notice from the sheriff. There is a definite process to the foreclosure and hopefully this information has been helpful. So thank you so much for joining me on the foreclosure Chronicles podcast and keep listening because it's getting good.

Speaker 1: 15:41

I have an investor that help homeowners in foreclosure. I have a HUD counselor that has helped homeowners in foreclosure and few and more episodes. Hopefully we'll be speaking with a credit repair per company that can help, because we also got to think about what's after the foreclosure. You know, I know we're focusing on the options you have now to either keep the home or exit the property with dignity. But then what's after? You know what does it look like after. So just know I'm working behind the scenes to get you that information, making connections, getting the resources, like I said, credit repair, because of course you know your credit is a little bit blemished. Hopefully I should have some property management companies or someone that can help homeowners find a place after they exit their property. So just stay tuned. You're not alone during this time. Again, thank you for listening to the For Closure Chronicles podcast. I'm your host, amy Ellis. Until next time. Thanks for listening.