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