North Carolina Bank Foreclosures are Heavy Burden to the National Government but a Blessing for Home Buyers

June 17th, 2009 admin Posted in Bank Foreclosures | 1 Comment »

Based on the data from the Office of the State Commissioner of Banks of North Carolina, foreclosures have risen by 9% in 2008. There were 45,470 foreclosed real estate properties in 2006, increased to 49,695 in 2007 and from 2008 to-date, it stood at 53,995. On the good side, the rate of foreclosure has slowed down in the past few months and in November 2008; it started to drop at 22% till now.

This may be due to the new legislation that requires lenders to provide 45 days grace period to home owners before a final closure proceeding is done. Since the new law was imposed, filings of foreclosures have considerably declined and in fact in some cities, the filings were reduced by 80%. However, some experts are contesting this belief saying that it may just be temporary. There is also an ongoing rumor that the market will improve within the next 12 months.

With these hopes of some economic stability and due to lower prices of homes compared to other years, people are now decided to buy homes in North Carolina which are subject to foreclosures. Some people choose North Carolina to buy their homes because of its mild temperature during winter and moderate climate in summer. During winter, the coast exudes the mildest temperature in the state.

This state is rich in history and endowed with beautiful sceneries such as the Blue Ridge Mountains of the Shining Rock Wilderness area, and a vast range of recreational facilities for outdoor sports and activities from swimming at the beach areas to skiing in the beautiful mountains. It has also theme parks, aquariums, zoos, museums fine dining and elegant theaters.

There are also properties which are available in tax liens. If you are a serious buyer, you must consider knowing the different options and given situations in buying real estate. In case of tax lien foreclosures, the new owner is obliged to pay the property taxes even if the former owner has vacated the home with unpaid taxes. There is no exception to pay the accrued taxes which are attached to the property.

The new owner puts the payment in escrow. When the tax is due, notices are sent to the owner and the lender where the lender becomes bothered that the owner may no longer be interested to pay the taxes. If this happens, the lender is held responsible to pay the tax liens. Tax lien foreclosures are threat to property holder because when the tax default has reached its maximum and the allowed time is consumed, the authority can sell the property to avail of the proceeds.

In case the owner decides to sell the property before the government takes over for tax lien foreclosure, the new owner has to settle the tax issue. Tax liens are imposed on different angles in different states. Normally, the lender combines the tax to the amount of loan to be paid in equal installments quarterly or annually. When payments of taxes are in default, the government confiscates the property.