How to Stop a Foreclosure in Raleigh, N.C.

North Carolinians can stop foreclosures on their homes and avoid selling them.

No one wants to go through foreclosure on a home mortgage. The homeowner does not want to lose his home; the bank or lender will get less money if a foreclosure happens. However, if you live in Raleigh, N.C., several resources are available through state government to stop foreclosures. The North Carolina Attorney General and Commissioner on Banks want to help. For free help dealing with foreclosure, call 866-234-4857 or call the HOPE hotline at 888-995-HOPE. Also, two websites give essential information: Fight NC Foreclosure and NC Commissioner of Banks Consumer Assistance. Over 2,000 North Carolina homeowners stopped foreclosure in 2009-2010 through North Carolina's Home Foreclosure Prevention Project.

Instructions

1. Communicate with your mortgage lender before foreclosure. Ask for a loan modification. North Carolina rules effective in 2010 state that lenders must stop a foreclosure process when a homeowner requests a loan modification. Some lenders may proceed with a foreclosure action while discussing a payment plan with the homeowner. This is why it is so important to contact your lender as soon as possible when you are having trouble paying your mortgage payments.

2. Call the North Carolina Department of Justice's free hotline for assistance: 866-234-4857. This is part of a new statewide campaign called: "Fight NC Foreclosure" that started in 2009. The hotline is answered from 8 a.m. to 9 p.m., Monday through Friday, and 8 a.m. to 5 p.m. on Saturday. At other times, please leave your name and number and you will receive a prompt return call. A counselor will ask about your mortgage situation, review your income and spending plan, and explain available options. You will receive free foreclosure advice through a state network of state agencies, counselors, legal service providers and nonprofit organizations. The counseling agency will be approved by HUD, the U.S. Department of Housing and Urban Development. These resources significantly increase homeowners' chances of stopping foreclosures. North Carolina agencies network to help the homeowner work through any problems with a lender to try to avoid foreclosure.

3. Check North Carolina laws. Under a 2008 North Carolina law, lenders must give a 45-day notice prior to filing a foreclosure.

Tips & Warnings

• Call the hotlines as soon as you know you have a problem with paying your mortgage.

• Beware of foreclosure assistance companies that ask for payment; it is illegal in North Carolina to charge a fee for this assistance.

• Watch out for real estate investors who say they will pay off your mortgage if you sign over the property deed.

References

• Fight NC Foreclosure
• North Carolina Commissioner of Banks: Foreclosure Information
• WRAL: Hundreds Helped by State Foreclosure-Prevention Program

Resources

• Stop Foreclosure: North Carolina Foreclosure Laws