FORECLOSURES IN NORTH CAROLINA

North Carolina General Statutes
Chapter 45, Article 2, Article 2A as referenced in Sections §45-4 to §45-21.38

Judicial Foreclosure Available: Yes

Non-judicial Foreclosure Available: Yes

Non judicial foreclosures are permitted if the deed of trust or mortgage contains a power of sale clause in the Deed of Trust. However, in North Carolina, a preliminary hearing by the clerk of the court must be held before a power of sale foreclosure can take place.

PRELIMINARY NOTICES: Non-judicial

Notice of Hearing: The notice of hearing shall be served upon all parties at least 10 days prior to the date of the hearing.

Notice of sale: The notice of sale must be mailed by first class to the borrower at least 20 days before the sale.

Advertising: The notice of sale must be published weekly in a newspaper of general circulation in the subject county for two successive weeks, with the last publication date not less than 10 days before the date of sale.

Posting: The notice of sale must be posted on the courthouse door at least 20 days before the date of sale.

SALE PROCEDURES: Non-judicial

Sale Procedures: The sale will take place at the subject county courthouse on the date designated between the hours of 10:00 AM and 4:00 PM. The auction shall remain open and bids may be filed with the clerk of the court for 10 days following the sale date.

Postponement: Sales may be postponed by announcement of postponement at the time and place of the original sale. A notice of postponement stating the new date and time of sale must be posted on the courthouse door.

Deficiency: A deficiency judgment may be obtained when a property in foreclosure is sold at a public sale for less than the loan amount which the underlying mortgage secures.

Redemption: North Carolina has a very short statutory right of redemption, which would allow a party whose property has been foreclosed to reclaim that property by making payment in full of the sum of the unpaid loan plus costs within 10 days of the sale through the upset bid process, where any bidder can increase the sale bid by 5% in order to become the winning bidder at the sale.