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North Carolina Foreclosure Law
Both court and out-of-court foreclosures occur in North
Carolina.
Pre-foreclosure Period
Foreclosures go through the courts when there are title
problems. A lawsuit is filed to obtain a court order of
foreclosure, and the foreclosure sale process is directed by the
court. Out-of-court proceedings are most common. They occur when
a clause exists in a mortgage that empowers the lender to sell
the property if the borrower defaults. A preliminary hearing is
conducted before a power of sale foreclosure can take place. Not
fewer than 10 days before the notice of hearing, the lender
mails or personally delivers the amount due plus expenses to the
borrower. After the notices have been issued, the county clerk
conducts the hearing to determine whether a foreclosure sale
will take place. The typical foreclosure timeline is
approximately three to four months.
Notice of Sale / Auction
If the deed of trust or mortgage contains a power of sale
clause and indicates the time, place, and terms of sale, then
the specified procedure must be followed. A notice of sale must
include the names of all parties involved, a legal description
of the property, and the date, time and location of the sale.
The lender mails the notice of sale to the borrower and relevant
parties at least 20 days prior to the sale date. The lender also
publishes the notice in a local newspaper once a week for two
weeks, and the last publication cannot be more than 10 days
before the sale date. Further, the lender posts the notice of
sale at the county courthouse at least 20 days before the sale.
The sale is conducted between 10:00 a.m. and 4:00 p.m. at the
courthouse, and the property is sold to the highest bidder. If
the sale is postponed, a notice stating the revised date and
time of the sale is posted at the courthouse. The borrower has a
10-day right of redemption after the sale by paying what is owed
to the lender plus any sale costs. Further, any party may enter
an upset bid during that same period by submitting a deposit of
at least 5 percent of the bid to the county clerk.
CALL TODAY FOR A FREE AND CONFIDENTIAL CONSULTATION
(850)474-8884
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