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Stop Foreclosure - North Carolina |
North Carolina Foreclosure Law Summary
Most Common Method of Foreclosure: Power of Sale with prior hearing before clerk.
Preforeclosure Notice:
Number of Notices: Three: Notice of Default, Notice of Hearing and Notice of Sale.
Amount of Notice Required: For Notice of Default, thirty days before notice of hearing. For Notice of Hearing, ten days before the hearing. For Notice of Sale, twenty days before the sale for service on the debtor.
Content of Notice:
Notice of Default: Amount of principal and interest due, the interest rate, and any other sums claimed to be due.
Notice of Hearing: a) description of the property, date and original amount of mortgage, and the book and page where recorded; b) name and address of holder; c) nature of default; d) whether mortgage has been accelerated; e) any right to cure; f) right of debtor to appear before the clerk to show cause why foreclosure should not be allowed; g) that if foreclosure is consummated, debtor will be evicted; and h) other miscellaneous information. Must confirm that notice of default mailed.
Notice of Sale: a) description of instrument (mortgage); b) date, time, and place of sale; c) description of the property; and d) terms of sale.
Method of Service: For a Notice of Hearing, by service on the debtor like a summons. For a Notice of Sale, by posting fifteen days prior to the sale; by publishing in a newspaper once per week for two consecutive weeks, with the date of the last publication not less than ten days before the sale; or by regular mail to the debtor.
Redemption: By payment in full, plus expenses of sale or proposed sale, before sale or within ten days thereafter.
Post-Sale Provisions Regarding Proceeds: Final report of the sale must be filed with the clerk within thirty days of the receipt of sale proceeds. The report must include proof of notice. Surplus proceeds go to the person entitled to them, if known; if not known, the proceeds are paid to the court clerk for determination.
Deficiency: The mortgagor can show the fair market value of the property as a defense in a deficiency action. No deficiency judgment on foreclosure by power of sale of purchase money mortgage.
Miscellaneous: Upset bids are allowed. Note that issues at clerk's hearing are limited to whether there was a valid debt; whether a default has occurred; whether holder has right to foreclose and whether proper notice was given. Other defenses must be raised in action to enjoin foreclosure.
Stop Foreclosure North Carolina
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