North Carolina Foreclosure Laws
Judicial Foreclosure Available: Yes
Non-Judicial Foreclosure Available: Yes
Security Instruments: Mortgage, Deed of Trust
Right of Redemption Period: Varies
Deficiency Judgments Allowed: Varies
Time Frame: 60 Days
Public Notice: Notice Hearing
North Carolina is considered to be a title theory state, which means that a property title will remain in trust until the loan is paid in full. In the state, a title can be secured by either a mortgage or a deed of trust. The mortgage and deed of trust serve the same purpose and generally have the same terms.
Both judicial and non-judicial foreclosure methods are permitted in North Carolina in the event that the borrower defaults. Borrowers have within ten (10) days of the sale through the bid process to win back their property by making the highest bid. The state also permits deficiency judgments when a property is sold for less than what was owed on it.
Types of Foreclosures Allowed in North Carolina
Judicial foreclosure, also known as foreclosure by judicial sale, involves selling the defaulted property under court supervision. In order for a judicial foreclosure to be possible, no power of sale clause may be present in the loan documents. The lender must file a lawsuit against the borrower to obtain an order to foreclose. The court will then decide if the property will be foreclosed, and if so, will put the property up for auction.
Non-judicial foreclosure, also known as foreclosure by power of sale, allows for the property to be sold without court supervision. In order for non-judicial foreclosures in North Carolina to be possible, the loan documents must contain a power of sale clause. This method is usually faster and less expensive than judicial foreclosure.
There are two ways in which a non-judicial foreclosure in North Carolina can be executed. If the power of sale clause states a specific time, place, and outlines terms of sale, then the lender must follow the procedure that is stated. If there is no specification, then the following regulations must be adhered to:
1. A notice of sale must be mailed via first class mail to the borrower at least twenty (20) days prior to the date of the sale. A copy of the notice must also be published in a newspaper that circulates in the county where the property is located once a week for two (2) consecutive weeks. The last publication must be printed no less than ten (10) days before the sale. In addition, another copy of the notice must be posted on the courthouse door of the county where the property is located for twenty (20) days prior to the sale.
2. The notice must contain information regarding the borrowers and lenders, must describe the property itself and must contain the specific details about the sale.
3. The sale must be conducted at the county courthouse where the property is located between 10 a.m. and 4 p.m. any day except for Sunday or a legal holiday. The property will be then be sold to the highest bidder. In North Carolina, upset (raised) bids may be filed with the court clerk up to ten (10) days after the foreclosure sale.
4. The sale may be postponed up to ninety (90) days with an announcement at the time and place of the original sale. A notice of the postponement must be posted on the courthouse door and must indicate when and where the next sale will take place.
Hiring a North Carolina Foreclosure Lawyer
The possibility of having your property foreclosed is a very real threat with the current condition of the economy. However, even if you have already received a foreclosure notice, there is still time to stop your home from being repossessed. Turn to a leading foreclosure lawyer in North Carolina for help protecting your rights as a homeowner and fighting for your property.
Foreclosure attorneys do whatever it takes to make sure your home is not seized. They will work with your lender to come up with an alternative plan to foreclosure that will benefit all parties involved.. Your foreclosure attorney may suggest mortgage modification, refinancing or even a temporary halt in payments. No matter what the proposal, rest assured that your case will end with the best possible outcome when you have a leading team of foreclosure lawyers defending your rights.
Don’t wait another minute before contacting an acclaimed foreclosure attorney in North Carolina today to prevent your home from being seized.