How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask christygold Your Own Question

christygold
christygold, Lawyer
Category: Real Estate Law
Satisfied Customers: 462
Experience:  Currently manage over a hundred rental properties.
Type Your Real Estate Law Question Here...
christygold is online now
A new question is answered every 9 seconds

Is North Carolina a non-recourse mortgage state. If you lose

Resolved Question:

Is North Carolina a non-recourse mortgage state. If you lose your job and are unable to pay the mortgage, what options does the lender have.
Submitted: 5 years ago.
Category: Real Estate Law
Expert:  christygold replied 5 years ago.
Customer

North Carolina allows non-recourse mortgages, but does not require them. You will have to look at your loan and mortgage documents to see which kind you have. More than likely, the lender would be able to pursue you for a deficiency judgment if the sale of your home does not cover the balance of your loan.

You should speak to your lender, because there are several options available to you. If you want to walk away from the loan and avoid a foreclosure, you can do a deed in lieu of foreclosure, where you simply give the home back to the bank and that is the end of it. They would agree not to hold you responsible for any deficiencies on the loan.

If you want to try to keep the home, many lenders are now offering lenient loan modifications. That means they might suspend your payments for a few months, offer interest only payments, or lower your monthly payments and extend the length of your loan. To do a loan modification you will have to provide all of your financial information to the lender.

It is my experience that if you talk with your lender they will be willing to work with you, whether by modifying your loan or by taking the house back and avoiding foreclosure.

If I have answered your question, please click Accept. I am happy to answer follow-up questions if you need clarification.

Thanks,
Christy
christygold, Lawyer
Category: Real Estate Law
Satisfied Customers: 462
Experience: Currently manage over a hundred rental properties.
christygold and 2 other Real Estate Law Specialists are ready to help you
Customer: replied 5 years ago.

Where would I find out on my mortgage documents if it is non-recourse?

 

What do you mean that the lender can pursue me for a deficiency judgement? What is my liability and what assets can they attach.

 

You mentioned that I could use a "deed in lieu of foreclosure" and walk away. What is the likelihood that the mortgage holder will accept or do they have a choice?

 

 

Expert:  christygold replied 5 years ago.
Customer

A deficiency judgment occurs when a home is foreclosed and the sale price is less than the outstanding value of the loan.

Here is an example:

You owe $50,000 on your mortgage. The bank forecloses on the house and sells it but can only sell it for $30,000. There is a deficiency judgment for $20,000 that the bank can pursue against you by garnishing bank accounts or paychecks, or placing a lien on any other real estate that you own.

The mortgage holder does not have to accept a deed in lieu but they probably will, especially in the market conditions of today.

The document would specifically say "non recourse."

Let me know if you need any further clarification, I will be happy to help.

Christy

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
< Last | Next >
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
  • My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer. Eric Redwood City, CA
  • I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight. Michael Wichita, KS
  • PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent. Three H. Houston, TX
  • Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!! Elaine Atlanta, GA
  • It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem. Tony Apopka, FL
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
 
 
 

Meet The Experts:

 
 
 
  • Tina

    Lawyer

    Satisfied Customers:

    4813
    16 years of legal experience including real estate law.
< Last | Next >
  • http://ww2.justanswer.com/uploads/MU/multistatelaw/2011-11-27_173951_Tinaglamourshotworkglow102011.64x64.jpg Tina's Avatar

    Tina

    Lawyer

    Satisfied Customers:

    4813
    16 years of legal experience including real estate law.
  • http://ww2.justanswer.com/uploads/LA/lawpro/2012-6-25_171315_PT206740s.64x64.jpg Law Pro's Avatar

    Law Pro

    Lawyer

    Satisfied Customers:

    6227
    20 years extensive experience in real estate law, foreclosure, finance, and landlord tenant law.
  • http://ww2.justanswer.com/uploads/BA/barristerinky/2012-6-10_22423_office.64x64.jpg Barrister's Avatar

    Barrister

    Lawyer

    Satisfied Customers:

    4966
    13 years real estate, Realtor. Landlord 24+ years
  • http://ww2.justanswer.com/uploads/LA/LawTalk/2012-6-6_17379_LawTalk.64x64.JPG LawTalk's Avatar

    LawTalk

    Attorney

    Satisfied Customers:

    4446
    I've more than 27 years legal experience. Additionally, in CA I held a Real Estate Broker's license.
  • http://ww2.justanswer.com/uploads/RA/rayanswers/2012-6-7_23346_Untitled1.64x64.jpg Ray's Avatar

    Ray

    Lawyer

    Satisfied Customers:

    4030
    Texas Attorney for 29 years dealing in real estate
  • http://ww2.justanswer.com/uploads/PH/philip.simmons/2012-6-7_161915_BIGPhilipSimmons.64x64.jpg P. Simmons's Avatar

    P. Simmons

    Lawyer

    Satisfied Customers:

    2377
    12+ yrs. of experience including real estate law.
  • http://ww2.justanswer.com/uploads/mnphillips2/2009-03-13_203105_10984459-249293407.jpeg Phillips Esq.'s Avatar

    Phillips Esq.

    Attorney-at-Law

    Satisfied Customers:

    2355
    B.A.; M.B.A.; J.D.