Homeowner FAQ

PLEASE BE ADVISED THAT PURSUANT TO THE FAIR DEBT COLLECTIONS PRACTICES ACT, OUR OFFICE MAY BE DEEMED A DEBT COLLECTOR. ANY INFORMATION GIVEN CAN BE USED FOR THAT PURPOSE.

In Addition, Be Advised WE CANNOT GIVE YOU LEGAL ADVICE. This document is meant for informational purposes only. This should only be used as a starting point for individuals facing foreclosure who have no familiarity with the process. If you have recently received a Notice of Foreclosure, there are still many options you may have to preserve your homeownership. If you are seeking legal advice, please contact an attorney or your local Bar Association.

Q1: I am a homeowner facing foreclosure, what are my options to save my home?

Q2: I am renter/tenant/occupant and I have received the notice of hearing for foreclosure – how long do I have to vacate the home?

Q3: I am a renter/tenant/occupant – what are my rights to the property?

Q4: I am a renter/tenant/occupant and have paid my rent on time every time – why am I being evicted?

Q5: I am a renter/tenant/occupant and am being evicted – do I need to keep paying my rent?

Q6: I want more time to vacate – how do I get an extension?

Q7: I am a renter/tenant/occupant and I would like to purchase the property – how can I do so?

Q8: I am a renter/tenant/occupant who has been approached by listing agent regarding “Cash For Keys”. However, the date on the signed agreement is after the expiration of the notice to vacate – what do I need to do?

Q9: I am an occupant of a property and the locks have already been changed but I have not received any eviction notice or the notice to vacate has not yet expired – what do I need to do?

Q10: The lockout has already taken place but I still have items in the home – how do I get them out?

Q11: Can the lockout be postponed?

Q12: I am a former owner of the property that was foreclosed up and I would like to reinstate or payoff my loan – how can I do this?

Q13: There is a manufactured home on a tract of land that was evicted however the wheels, axle and hitch are still intact – is the home part of the eviction?

Q14: I am a third party bidder who purchased a property through your office at a foreclosure sale. Do I have to use your office to evict the home?

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Q1: I am a homeowner facing foreclosure, what are my options to save my home?

Major misconceptions people have when facing a foreclosure are “it’s all over, when do I have to move?” or “the lender just wants my house”. In many situations, lenders are willing to work with you to resume payment on the account or make appropriate arrangements to repay.

The Bottom Line: Communicate with your lender. We encourage you to contact the “Loss Mitigation” department of your mortgage company. If you do not have that number, please feel free to contact our reinstatement department at (704) 971-6363. We will be happy to provide you the contact information for your particular mortgage company. We may be able to provide reinstatement and payoff quotes upon request. Your lender can advise you whether any of the following options are available in your particular situation.

WHAT MAY BE MY OPTIONS FOR AVOIDING A FORECLOSURE?

1. FORBEARANCE: This option allows you to make your regular payment, plus an additional amount, each month until the mortgage is caught up. The additional amount you pay is applied toward the delinquency. This option is best suited for individuals who faced a temporary reduction in income but have now resumed their previous financial position and are able to begin repayment.

2. HOME AFFORDABLE MODIFICATION PROGRAM (“HMP”): If your lender participates in the HMP program, you may qualify for assistance under the Federal government’s HMP program. Under HMP, you would be required to make three “trial period” payments while your lender evaluates you for a permanent loan modification. A loan modification “re-writes” the terms of the mortgage. It can add the delinquency to the balance of the loan and spread the amount currently behind over the term of the loan. Sometimes, the interest rate and the length of the loan can also be changed.

Successful payments under the trial period may not guarantee that you will qualify for a permanent modification. Also, foreclosure is allowed to proceed during the pendency of the trial period; however, your lender will likely postpone your sale until a permanent modification is either approved or denied. Please visit www.makinghomeaffordable.gov or your lender’s website for more information.

3. LOAN MODIFICATION: If your lender does not participate in HMP or you do not qualify, your lender may have other loan modification programs available to you. Your lender can tell you what options are available with your loan.

4. SELL THE PROPERTY: If you are unable to make payment arrangements or decide not to retain the property, you can always sell. This option will typically only be available if you have equity in the property.

5. SHORT SALE: If you owe more on your house than it’s worth, many times the mortgage companies will entertain a “short sale” of the property where they accept a lower amount to satisfy the mortgage. You would have to contact your mortgage company to determine specifically what they would require to consider a short sale; typically, they will require at least a standing offer to purchase the property.

6. DEED-IN-LIEU: In certain circumstances, the bank will accept a Deed to the property from you without having to go through the legal process of foreclosure. You would have to contact your mortgage company to determine your circumstances.

Q2: I am renter/tenant/occupant and I have received the notice of hearing for foreclosure – how long do I have to vacate the home?

Our office does not always conduct the eviction on a property where we conduct the foreclosure. Thus, we cannot provide an exact date you must vacate the home. Once the foreclosure is completed and a Trustee’s Deed is recorded, eviction MAY begin under certain circumstances. Notice will be first sent to the home specifying a date to vacate.

Q3: I am a renter/tenant/occupant – what are my rights to the property?

It depends. If you are a “Bona-Fide Tenant” (meaning you are not related to the former owner or your lease is longer than month to month lease), you may be able to stay in the property under your lease with the foreclosed landlord if your rent is current. Our office will need a copy of your lease and evidence that you have paid your rent on-time for at least the past 90 days. If you meet these conditions and your lease has longer than 90 days left, you may be able to remain in the property pending a re-sale of the property by the high bidder at the foreclosure sale.

Unfortunately, if your lease agreement is set to expire in 90 days, you will need to find another place to live. Even if your lease is longer than 90 days, the purchaser at the foreclosure sale can still market the property. If it finds a buyer, you will then be given 90 days to move.

Q4: I am a renter/tenant/occupant and have paid my rent on time every time – why am I being evicted?

Please see question #2 – If you are “Bona-Fide Tenant” whose lease has more than 90 days left on it, you may be able to stay in the home. If your lease is less than 90 days or you are not a Bona-Fide tenant, you will still need to move even though you have been paying your rent on-time.

Q5: I am a renter/tenant/occupant and am being evicted – do I need to keep paying my rent?

If you qualify as a “Bona-Fide Tenant” and can produce a rental agreement that expires at some point in the future beyond 90 days, be prepared to pay rent to the new owner. Our office may be able to co-ordinate the rent payments to your new landlord. If you cannot produce a rental agreement, have a rental agreement that is set to expire within 90 days or are not current in your rent, you will need to find another place to live within the next 90 days.

Q6: I want more time to vacate – how do I get an extension?

We need to know why the extension is being requested, how much time you need and a contact number. We will then pass the information along to the lender for approval as our office does not have the authority to grant an extension.

Q7: I am a renter/tenant/occupant and I would like to purchase the property – how can I do so?

Our office does not handle the purchase or re-purchase of the property currently occupied. You will need to contact the listing agent of the home to make an offer, however our office can provide contact information for the agent in most cases. You will need a signed contract and proof that funds can be obtained for a loan.

Q8: I am a renter/tenant/occupant who has been approached by listing agent regarding “Cash For Keys”. However, the date on the signed agreement is after the expiration of the notice to vacate – what do I need to do?

Our office does not handle any aspect of the Cash For Keys process (also known as Relocation Assistance Agreement) thus we typically do not know there is a cash for keys agreement pending. If possible, please fax the agreement to our office so that we may contact the lender or provide the details of the agreement. Please note that not all lenders offer Cash For Keys and it is not a requirement for lenders to do so.

Q9: I am an occupant of a property and the locks have already been changed but I have not received any eviction notice or the notice to vacate has not yet expired – what do I need to do?

The locks should not be changed on an occupied home until after the lockout. The lender may have been informed the property is vacant. If possible, the listing agent’s contact information will be provided for you to contact to get back into the home. Our office will inform the lender to have it corrected. If the listing agent’s contact information is not accessible, we will need your contact information to pass along to the lender

Q10: The lockout has already taken place but I still have items in the home – how do I get them out?

You have 10 calendar days after the lockout to remove any remaining personal items from the home. The agent will have to accompany you to the property to ensure that no vandalism or theft occurs to the property after the lockout is completed.

Q11: Can the lockout be postponed?

Since our office does not set the lockout date we cannot postpone a lockout. These dates are set by the sheriff and cannot be cancelled without a written request from the lender before the lockout date.

Q12: I am a former owner of the property that was foreclosed up and I would like to reinstate or payoff my loan – how can I do this?

Once the Trustee’s Deed is recorded with the Register of Deeds you no longer own the home and reinstatement or payoff is not an option. The only option at this time is to vacate the home before the lockout date is set by the sheriff.

Q13: There is a manufactured home on a tract of land that was evicted however the wheels, axle and hitch are still intact – is the home part of the eviction?

If the undercarriage of the manufactured home is still intact and it has not been placed on a permanent foundation, you may have 21 calendar days after the lockout to have the home removed from the site or the lender can have it towed.

Q14: I am a third party bidder who purchased a property through your office at a foreclosure sale. Do I have to use your office to evict the home?

No. If the home is still occupied, you will need to hire an attorney to conduct an eviction. We can conduct the eviction for a fee of $450 plus any costs incurred. Our office can quickly file the paperwork to ensure minimal delays in your acquiring possession of the home.