Archive for 'North Carolina'

In February 2009, the number of properties in North Carolina foreclosure listings increased to 41 from 18 the previous month.

According to the North Carolina Administrative Office of the Courts, the January dipped in the number of homes in foreclosure listings was the second lowest in the state’s foreclosures record, with October 1999’s 16 foreclosure homes as the lowest.

However, after dropping to a low of 18 homes, February’s foreclosure listings added 23 homes, making 41 total foreclosures for the month. But the worst does not end here, the number of properties in foreclosure listings continued to rise to 63 the following month.

Also in March, North Carolina foreclosure filings increased 11 percent. Jeff Barger of the Rowan County Clerk of Court and Lou Adkins of the Salisbury Community Development Corp. attributed the decline in January’s foreclosure listings to moratoriums and North Carolina’s law that slowed down proceedings.

Unfortunately, whatever the state gained in its foreclosure prevention efforts was wiped out in February when foreclosure properties for sale rose due to the increasing unemployment rate.

Meanwhile, the North Carolina Mortgage Market Update cited several reasons why the state’s mortgage servicing system is not designed to handle mass foreclosure prevention. The report claimed that the system is designed to collect payments and remit them to investors but not to conduct underwriting of distressed homeowners.

The report also noted that in about 50 percent of foreclosure cases, homeowners did not attempt to contact their mortgage lender. Meanwhile, 70 percent of troubled loans were not eligible for any type of program to end foreclosure.

According to the report, federal efforts to put a stop to foreclosures failed to produce any significant result in 2008. It added that the loan modification program of President Barack Obama is the first scheme that has potential to succeed.

Meanwhile, some of North Carolina’s foreclosure listings reduction projects include the signing of the Emergency Program to Reduce Home Foreclosures, requirement for mortgage providers to send pre-foreclosure notice to homeowners who took out subprime loans 45 days before foreclosure filing and notice of pre-foreclosure filing in state database.

On the other hand, the weakening economic conditions from 2008 to 2009 increased the number of homes in foreclosure listings. The report pointed out that the current state foreclosure prevention plan will reduce, but not prevent the foreclosure growth.

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• Charlotte Foreclosure Listings
• Raleigh Foreclosure Listings
• Durham Foreclosure Listings
• Greensboro Foreclosure Listings

Home owners involved in Raleigh foreclosure homes are set to see some relief coming their way, as will home owners in other parts of the state. On 08/18/2008, a legislation was signed into law by Governor Mike Easley, which is to address the exorbitant number of foreclosures involving mortgages in North Carolina. With the passing of the new bill, additional notice will be required before foreclosing on homes, rate spread premiums are to end, and all mortgage providers will now need to be a part of state records.

Speaking to the media, Governor Easley said of the program that it was the first one of its kind across the country, and would ensure that lenders and homeowners alike avoid foreclosures. He said that the aim was to get borrowers together with lenders so that families could hang on to their houses, and lenders could avoid facing losses by foreclosing on homes.

The Emergency Foreclosure Reduction Program launched by the Governor will need the lenders to give the State Banking Commission and home owners notice 45 days before beginning foreclosure proceedings.

The Governor’s office said that, during that period, staff from the banking commission will work alongside the lender and the home owner in coming up with interest rates that would be acceptable to both, the borrower and the lender.

The Governor’s office also said that the law has also given the Bank Commissioner the authority to lengthen the notice for foreclosure filing by thirty days, giving the state time to work with mortgage holders and home owners to reach a common ground when it comes to payments and interest rates. Other provisions that the bill includes is the formation of the North Carolina Foreclosure Prevention Project. July 1, 2008 and November 1, 2008 were set as the two dates for the parts of the Law to come into effect.

The House Bill 2188, the governor’s office said, is to amend and clarify the bills that were passed in 2007, eliminating rate spread premiums. This will come into effect on 1 October, 2008.

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• Charlotte Foreclosure Homes
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Charlotte foreclosure homes could finally witness a revival. A Durham based financial institution that deals with at-risk neighborhoods is carrying on with what it does despite the credit and mortgage crisis that has gripped the nation. Since its inception in 1984, Self-Help, a non profit organisation, has provided 60,130 home owners with 5.24 billion.

Self-Help continues to buy. They then rebuild, lend and sell homes to people in neighborhoods which have been affected by the subprime crisis. Their C.E.O, Martin Eakes, said that despite the crisis, they are doing fine financially.

Self-Help now plans to buy homes in Charlotte. They are looking at the badly affected area of Peachtree for a program that will run along the lines of lease-purchase.
Martin Eakes said that Charlotte for them is a test case. They plan to buy empty homes, and get them occupied by people who have weak credit on a rental basis for around three to five years. If the tenants can then show that they are credit worthy and can afford to pay regular mortgage payments, they can then buy the home.

Self-Help’s real estate development director, Evan Covington Chavez, said that neighborhoods like Peachtree and Southside are finding it hard to survive. Entire communities are affected by foreclosures, as empty houses are subject to vandalism or simply lose their appeal due to continuous neglect.

Chavez said that they have started getting the grass cut and keeping the lights on, adding that their main focus is to get some stability into the neighborhood. Eakes also went on to say that though their efforts might not turn around the crisis, it could help be a part of something that could be applied on a larger scale.

Self-Help is diversified, they have a ventures fund, a credit union and also a research branch called the Center for Responsible Lending. In 2006, the Center for Responsible Lending predicted that two million homeowners were at risk of losing their houses as part of the sub-prime loan crisis.
Vacant Charlotte foreclosure homes could now expect a much needed face lift.

Start your search for Foreclosure Homes in North Carolina by Top Cities:

• Charlotte Foreclosure Homes
• Raleigh Foreclosure Homes

North Carolina foreclosures soared to new heights in 2007, making them one of the states with the highest jumps in foreclosure rate in the past year. During the period between November 2006 and November 2007, the amount of North Carolina foreclosure homes rose over 143%, which is a staggering figure, even for the foreclosure plagued southeastern region. The state still fares better than the national average however, which stands at about 1 foreclosure per 600 households. North Carolina averages roughly 1 foreclosure for every 1000 households.

But what’s really interesting about this jump in North Carolina home foreclosures is that despite having a booming state economy and a steady influx of new residents and jobs over the past few years, the number of defaults and subsequent foreclosures in the state is still growing.

Usually, a spike in foreclosed homes can be attributed to things like a sluggish economy or a high unemployment rate, but in a case like North Carolina’s, it really becomes apparent how much damage the proliferation of adjustable rate mortgages has done. ARMs and their sudden popularity during the real estate boom of the earlier half of the decade have been blamed by professionals all over the country as the main source behind the foreclosure real estate crisis sweeping the nation. North Carolina seems to prove this correct.

Before the market took a turn, many investors and homebuyers saw that North Carolina was attracting new residents, industry and jobs, and trying to capitalize on the soaring housing market, bought up lots of the state’s in-demand properties. Many of these investors bought these houses using adjustable rate loans, in hopes of flipping them quickly. Still more homebuyers bought their new houses through sub-prime loans, offering big discounts, but unfortunately carrying high monthly payments. However, once these loans adjust, investors and homeowners alike find it very difficult to keep up with the payments. As the market slowed, and properties values fell, it became difficult to sell them as well, and bank foreclosures or lender foreclosures became an inevitability, leading to lots of Durham foreclosures, Fayetteville foreclosures, Greensboro foreclosures and lots of other properties becoming available on the foreclosure market.

And this trend is primed to continue. Statistics show that during 2006, over 50,000 adjustable rate mortgages were purchased in North Carolina, most of them by sub prime borrowers. With many of these loans set to reset in 2008, experts are predicting another huge year for foreclosures houses in the state.

But for those interested in foreclosure investing, this could be an opportunity. Although the foreclosure rate may be high, North Carolina is still a very desirable location for many people, and continues to experience significant growth. Therefore, buying Charlotte foreclosures, Raleigh foreclosures or Winston-Salem foreclosures could be an excellent investment. Buying at foreclosure auction, banks or from government foreclosure agencies means getting a huge discount, sometimes up to 50% off market value. Turning around and selling these homes on the open market can reap huge rewards. Of course, it’s worth keeping an eye on the situation and waiting, as an increase in foreclosure inventory in North Carolina over the next year could drive prices even lower at auction.

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Charlotte foreclosure homes are available for the savvy investor. However, the public needs to understand the process of foreclosure. Foreclosure actually refers to the steps taken by a kinder when a homeowner defaults on payments. There are several stages to foreclosure that actually starts with a pre-foreclosure. Pre-foreclosure commences when the lender sends a Notice of Default or a Lis Pendens. At this stage, the homeowner can either attempt to work out a different payment arrangement, refinance the house of sell it to a third party. A notice of Default is a public document. Many savvy investors search newspapers and court records to find these documents and approach the homeowner to save them from further foreclosure proceedings. A homeowner may negotiate a sale to save himself from the adverse effect of foreclosure on his credit report. However, the potential buyer will need to make an offer that still allows the current homeowner to pay off the debt to the lender and walk away with something in their pocket. Foreclosures are a business transaction, however, many times the current homeowner never predicted they would find themselves in this situation.

If the homeowner cannot refinance, cannot show the lender a new payment arrangement is a viable option, or does not sell the property to another party, the lender generally will attempt to sell the property at an auction. Purchasing a property at an auction definitely comes with some risks. Many times you will be unable to view the property, have inspections or an independent appraisal. At times, the current homeowner will still be in residence. All auction properties must be paid in cash. Unless you have first hand knowledge of the property, any liens, and the condition, tread softly into an auction sale. You may be able to get Charlotte foreclosure homes below market value; however, you also inherit its problems, liens and possibly people who are reluctant to leave their home.

You heard it right; now is the time to purchase one of these North Carolina foreclosure homes. The timing is just about perfect. Compared to last March, the state’s foreclosures rate has decreased by almost 12 percent as sales activity picks up. Real estate experts are crossing their fingers and hoping that the trend will continue to move upward. The North Carolina market has been favoring the buyers for the past year and sellers have no choice but to cut down asking prices to stimulate activity.

Hopefully, state legislation will help control the number of North Carolina foreclosure homes. The state is actually the first one that passed a law against predatory lending practices in 1999. Local officials are quite alarmed with the considerable increase in foreclosure filings for the past couple of years, fueling investigations and inquiries. Now, the state is trying to recover from the negative effects of high foreclosures rate by implementing stricter lending rules.

Foreclosure homes in North Carolina were previously owned by buyers who were enticed by the attractive mortgage deals offered during the housing boom in the late 90s. Many aggressive lenders ignored the fact that these buyers have poor credit scores and were not actually qualified to take out loans, particularly adjustable rate mortgages. As a result, majority of the subprime mortgages has begun defaulting as interest rates started to reset in 2005.

Realtors like Foreclosure Deals have partnered with many of these owners who are hoping to sell their homes via foreclosure listings before the re-instatement period is up. If they accomplish this, these home owners will be able to avoid an ugly foreclosure record on their credit history. Their homes are usually offered at a fraction of what they cost in the open market, attracting seasoned investors looking for great bargains.