Dealing with foreclosure is a scary and overwhelming experience. A breach letter is the first step in the foreclosure process. Receiving one indicates that your lender has started the formal foreclosure process and you are at risk of losing your home.

As a North Carolina resident, it’s important to understand your rights and options when you receive a breach letter. In this blog post, we’ll discuss what a breach letter is, what it means for your home, and options if you’re facing foreclosure. Keep reading to discover more!

General Aspects of Breach Letters

A breach letter is a formal notice from your lender that you have fallen behind on your mortgage payments. The amount of time you have to catch up on your payments will be specified in the letter, and if you don’t comply with this time frame, you could be evicted.

What to do When Getting A Notice

Here are some tips you should follow once you receive a breach letter:

Stay calm

Although it’s frustrating, try to remain calm after receiving a breach letter. Remember that the letter is the first step of the procedure, and you have time to evaluate your options and figure out what to do. Read the letter carefully, so you can understand what it’s saying and what the lender is asking of you.

Reach out to your lender

Once you’ve read the letter, reach out to your lender as soon as possible. Remember, it’s in the lender’s best interest that you don’t default on your mortgage so they may be open to negotiation.

Get professional help

If you’re struggling with the next steps or communicating with your lender, consider hiring professional help. A housing counselor or lawyer can assist you in making sense of your breach letter and options.

Know your rights

As a North Carolina resident, you have certain rights when it comes to foreclosure, including:

• Paying the loan to avoid eviction
• Filing for bankruptcy
• Attending a mediation meeting with your lender
• Getting the money excess after the foreclosure sale
• Redeeming the property
• Applying for loss mitigation
• Refinancing your mortgage

What Are My Options If I Receive a Breach Letter?

If you’re facing foreclosure, it’s important to know that you have options. Depending on your specific situation, one or more of the following may be a good option for you:

• Reinstate your loan

You can catch up on your payments and bring your loan current by paying the delinquent amount, plus interest, fees, and costs.

• Pay off your loan

With the money available, you can pay off your entire mortgage balance and continue your life free of debts.

• Refinance your mortgage

Refinancing is asking for a loan to clear your current mortgage. This is an option if you can’t afford your current monthly payments but may be able to afford different payments.

• Get a workout agreement

A workout agreement is a legal contract between you and your lender that changes the original terms of your mortgage. You may be able to modify your loan terms to make them more affordable. This may include a lower interest rate, extending the loan term, or changing the type of loan.

• Bankruptcy

Filing for bankruptcy can stop foreclosure and give you time to reorganize your finances.

This is a legal process that can be complex, so it’s important to seek professional help if you’re considering this option.

• Sell your house

As mentioned before, when you receive a breach letter, you haven’t lost your home yet. You can sell your home to pay your mortgage balance while making a profit and without damaging your credit record.

If you search “how to sell my house in North Carolina?”, here are 3 ways:

1. Selling it yourself: You will have to take care of the paperwork and the marketing of your home, making it more challenging.
2. Hiring a real estate agent: Realtors have the experience and networks to sell your home quickly. But remember that they charge a commission for their services.
3. Selling to a home buyer: The “we buy houses fast” or “we pay cash for houses” ads are more common now. These companies are professional home buyers who will buy your home as-is for a fair price and close the deal quickly.

A Reliable Option To Avoid Foreclosure With Travis Buys Homes

Travis Buys Homes is a professional home buying company committed to helping North Carolina homeowners sell their homes to avoid foreclosure. We pay cash for houses in North Carolina and will close on the deal in less than 7 days.

Our team will provide you with the support and resources you need to make the best decision for your situation. We buy houses fast, and in as-is condition, so you don’t have to spend money on repairs or renovations.

If you’re facing foreclosure, don’t wait to take action. The sooner you contact us, the sooner you clear your debts and move on with your life. Don’t hesitate to reach out if you have any questions or concerns; we’re here to help!