Foreclosure Notices Surge 20 percent in North Carolina

When foreclosure rates dropped earlier this year, housing experts warned that, despite the good news, they anticipated foreclosure starts to rise later this year. And now the predictions are coming to fruition as North Carolina foreclosures rose 20 percent in May as part of a nationwide trend.

Approximately, 109,051 homes received a default or foreclosure auction notice in May, which will further depress housing prices.

In North Carolina 3,220 homes got a default notice. Once the foreclosure process begins, a homeowner has few options to prevent banks from seizing their homes.

Short sales are a growing national trend. In the first three months of 2012, short sales increased by 25 percent. This is a great way for a homeowner to sell their homes for less than they owe the bank and have much their remaining balance forgiven.

While short sales give some relief from foreclosure, many homeowners don’t want to leave their homes and must enlist the expertise of a North Carolina foreclosure attorney to detail their options.

Mortgage modifications are a viable solution to a bank seizure however the homeowner must qualify. And mortgage lenders have a bad track record of denying modifications or delaying paperwork making a debtor ineligible. When seeking a mortgage modification, an individual will have better luck with the assistance of a foreclosure lawyer, who will negotiate with a lender on their client’s behalf.

If housing experts are right, foreclosures will continue to rise as banks move to clear their back log of defaulted loans. A North Carolina foreclosure lawyer can offer their advice on which foreclosure prevention tactic is appropriate for their client.