How Does Foreclosure Work In NC

What is foreclosure anyway?

Foreclosure is a very stressful process for North Carolina homeowners. It allows the lender to sell or take ownership of the property to recover the amount owed on a defaulted loan. The foreclosure process gets initiated when a homeowner defaults on their mortgage payments. Once the foreclosure process is complete, the lender sells it at auction. The house gets sold to the highest bidder, who can take possession. 

Stages of the Foreclosure Process

There are two methods of foreclosure in North Carolina:

1. By filing a lawsuit seeking foreclosure

2. By conducting an out-of-court foreclosure sale under the terms of a power of sale clause in a deed of trust.

Under Judicial Foreclosure:

If the lender opts to foreclose by filing a lawsuit, they will attempt to obtain a default judgment. Suppose the lender is successful in acquiring a judgment. In that case, the court clerks of the Superior Court have the power to appoint commissioners who oversee the foreclosure sale, confirm the reported sale, and receive reports on the sale. They may also order the execution and delivery of a deed to the property. The clerk may issue writs of assistance to evict any occupants with ten days’ notice.

Under Power of Sale (Nonjudicial) Foreclosure:

If the lender chooses a nonjudicial foreclosure, they must complete the out-of-court procedures described in the state statutes. Although, North Carolina Nonjudicial foreclosures usually only involve one court hearing. After the required steps get completed, the lender can sell the home at a foreclosure sale. Most lenders use the nonjudicial process because it’s quicker and less expensive than going to court.

What Happens After A Foreclosure Auction?

Once the sale gets completed, the trustee will transfer ownership of the property to the purchaser by signing a trustee’s deed. This deed will then get recorded in the county register of the deeds office. The trustee will file an accounting of the sale proceeds with the clerk of the superior court. If the original property owner does not vacate the premises, the new owner may take legal action to obtain possession of the property.

After a foreclosure, the loan amount gets paid off with the proceeds from the sale of the property.

If the property sale doesn’t cover the entire loan amount, the borrower may be issued a deficiency judgment. This means that the bank gets a judgment against the borrower for the remaining funds owed to the bank.

Are you Facing Foreclosure and Want to Avoid it?

If you’re struggling to keep up with mortgage payments or are worried about the possibility of foreclosure, selling your home to Cash Today home buyers may be the best solution. We specialize in helping people in your situation and can often negotiate directly with the bank on your behalf. In some cases, we may even be able to prevent foreclosure altogether. And, even if your home is worth less than what you owe, we may still be able to help you sell it and get out from under that debt.

Please let us know if you’re currently facing foreclosure and need to sell a property near Charlotte. We can help!

Like yours, we buy houses in Charlotte, NC, from people who need to sell fast!

Give us a call anytime at (704) 665-0195 or fill out this quick form to get started today! >>

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