We get many questions about the stages of foreclosures on the Outer Banks. Below is an explanation and sample time line of the foreclosure process.
- Filing Date - This is the start of the process and where the legal party (lender, homeowners association or government entity) file at the courthouse intent to proceed with a foreclosure. We originally thought we would skip this stage because some owners would find a solution and it would not make it to the next stage. Our intention now is to include this stage - if someone is interested in a buying a short sale (a reduced buyout before the foreclosure), this would be a great time to begin that process. This also benefits the owner by bringing potential buyers to the property.
- Hearing Date - Filing Date + 4-6 weeks. This is the date where the owner has the opportunity to plead their case as to why they might need an extension. It could be a potential short sale, a potential regular sale, refinancing or a few other options. The potential outcome: 1. foreclosure dismissed 2. the hearing could be rescheduled for a future date or 3. the foreclosure date could be set.
- Sale Date - Hearing Date + 21 days. This is the date the property is sold on the courthouse steps. I have attended sales where buyers flew in from out of state only to discover the process had been delayed a week at the last second. If you would like additional information on Matt representing a buyer at the courthouse, please feel free to contact us and we will explain the process. Potential Outcome: 1. Buyer buys back own property. 2. Another party purchases property or 3. Bank buys back property with no additional bidders.
- Bank Owned Options - Sale Date + 2 -6 weeks. If the lender buys back the property - they will hire a Realtor to list the home and try to sell on the open market. There are many factors involved - some are sold as is, some will have minor improvements. Most of the information you see online for Outer Banks foreclosures are actually bank owned properties that have already gone through the foreclosure process.
We intend on updating each listing with the stages listed above with estimated dates for each step of the process. These dates are subject to change by the factors listed above. If you have any questions, please feel free to contact us.
