Search Guide

North Carolina Foreclosure Laws

Jun 06, 2013 - 2 Min read
Real Estate Expert

Foreclosure Process Overview

Both court and out-of-court foreclosures occur in North Carolina.

Judicial Non Judicial Comment Process Period Publish Sale Redemption Period Sale/NTS
Non-judicial mostly 110 days 25 days None Sheriff

Pre-foreclosure Period

Foreclosures go through the courts when there are title problems. A lawsuit is filed to obtain a court order of foreclosure, and the foreclosure sale process is directed by the court.

Out-of-court proceedings are most common. They occur when a clause exists in a mortgage that empowers the lender to sell the property if the borrower defaults. A preliminary hearing is conducted before a power of sale foreclosure can take place. Not fewer than 10 days before the notice of hearing, the lender mails or personally delivers the amount due plus expenses to the borrower. After the notices have been issued, the county clerk conducts the hearing to determine whether a foreclosure sale will take place.

The typical foreclosure timeline is approximately three to four months.

Notice of Sale / Auction

If the deed of trust or mortgage contains a power of sale clause and indicates the time, place, and terms of sale, then the specified procedure must be followed.

A notice of sale must include the names of all parties involved, a legal description of the property, and the date, time and location of the sale. The lender mails the notice of sale to the borrower and relevant parties at least 20 days prior to the sale date. The lender also publishes the notice in a local newspaper once a week for two weeks, and the last publication cannot be more than 10 days before the sale date. Further, the lender posts the notice of sale at the county courthouse at least 20 days before the sale.

The sale is conducted between 10:00 a.m. and 4:00 p.m. at the courthouse, and the property is sold to the highest bidder. If the sale is postponed, a notice stating the revised date and time of the sale is posted at the courthouse.

The borrower has a 10-day right of redemption after the sale by paying what is owed to the lender plus any sale costs. Further, any party may enter an upset bid during that same period by submitting a deposit of at least 5 percent of the bid to the county clerk.

More Resources

Learn how to prevent a home foreclosure
Get help stopping a home foreclosure
Search foreclosures in North Carolina
Learn how to buy foreclosures

You might also like
Alabama Foreclosure Laws
3 min read Alabama Foreclosure Laws Under Alabama (AL) foreclosure laws, both judicial and nonjudicial foreclosures are permitted. Alabama is generally considered a nonjudicial foreclosure state, so most foreclosures take place outside of court after a homeowner has defaulted on their mortgage loan and the Alabama pre-foreclosure process has been completed. The typical Alabama foreclosure takes between two and three months. […]
Alaska Foreclosure Laws
2 min read Alaska Foreclosure Laws Foreclosure Process Overview Both in-court and out-of-court foreclosures are available in Alaska, but most foreclosures are done out of court. The typical out-of-court foreclosure takes 3-4 months. Judicial Non Judicial Comment Process Period Publish Sale Redemption Period Sale/NTS • • Judicial rarely 105 days 65 days 365 days* Trustee * Judicial foreclosures only Pre-foreclosure Period […]
Arizona Foreclosure Laws
3 min read Arizona Foreclosure Laws Foreclosure Process Overview Both judicial (in-court) and non-judicial (out-of-court) foreclosures occur in Arizona, although judicial foreclosures are not common in the state. The typical timeline for an non-judicial foreclosure is at least three months from the date the first notice of foreclosure sale is filed to the date of the actual foreclosure sale. Judicial Non […]