| Which law provision governs foreclosure in | | | | |
| North Carolina? | | | | If the deed of trust/mortgage contains a |
| | | | power of sale clause with specified time, |
| You can find about this in North Carolina | | | | place and terms of sale, then it should be |
| General Statutes, Chapter 45 (Mortgages and | | | | followed. But in North Carolina, a |
| Deeds of Trust), Article 2, Article 2A as | | | | preliminary hearing needs to be held before |
| referenced in §45-4 to §45-21.38 | | | | the power of foreclosure takes place. |
| | | | |
| What happens during Judicial Foreclosure in | | | | The clerk of the county determines whether a |
| North Carolina? | | | | foreclosure should take place or not, after |
| | | | the release of preliminary notices. If clerk |
| It involves filing a law suite to obtain a | | | | issues foreclosure notice, the process is |
| court order. This is done when no power of | | | | done as follows: |
| sale is present in mortgage/deed. Once | | | | |
| foreclosure is declared, property is | | | | A notice should have the names of borrower, |
| auctioned off to highest bidder. | | | | the lenders, description of the property, |
| | | | date/time/place of the sale. The notice |
| What happens during Non-Judicial Foreclosure | | | | should be mailed to the borrower 20 days |
| in North Carolina? | | | | before the sale by first class mail. It |
| | | | should be published in local newspaper for |
| Non-judicial foreclosure is conducted only | | | | two consecutive weeks in local newspaper and |
| when power of sale clause exists in deed of | | | | second ad should appear 10 days before the |
| trust/mortgage. This clause allows borrower | | | | sale. Also notice should be posted on court |
| pre-authorizes the sale of property to pay | | | | door, 20 days before the sale. The sale is |
| off the balance loan in the incidence of | | | | conducted between 10 a.m. to 4 p.m. Upset |
| their default. In such cases power is given | | | | bids may be filed with the court clerk for a |
| to lender to sell the property by himself or | | | | period of ten (10) days after the foreclosure |
| his representative who generally referred as | | | | sale. Lenders can obtain deficiency judgments |
| trustee. Guidelines for such procedure are | | | | and the borrower gets right of redemption. |
| mentioned under "Guidelines for power of sale | | | | |
| foreclosure". | | | | This is legal information; it should not be |
| | | | treated as legal advice. |
| Guidelines for power of sale foreclosure | | | | |