What are the foreclosure laws in North Carolina?
The laws for foreclosure in North Carolina can be confusing.
Summary:
| Judicial Foreclosure | Yes |
| Non-Judicial Foreclosure | Yes |
| Security Instruments | Deed of Trust, Mortgage |
| Right of Redemption | Yes |
| Deficiency Judgments | Varies case by case |
| Time Frame | Usually 60 days |
Judicial foreclosure: In the absence of a power of sale clause in the loan document that authorizes the lender to sell the property in the event of default, the lender must sue the borrower to obtain an order to foreclose.
Non judicial foreclosure requires that the clerk of the court hold a hearing to determine whether or not a foreclosure may take place. The notice of hearing shall be served upon all parties at least 10 days prior to the date of the hearing. If the clerk of the court finds that foreclosure may proceed, the process is as follows:
The notice of sale must be mailed by first class to the borrower, 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, and posted on the courthouse door at least 20 days before the date of sale.
The sale will take place at the subject 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.
The sale 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.
