North Carolina Foreclosure Timeline and Laws

North Carolina Foreclosure Process and Procedure

If you default on your mortgage, your lender can institute foreclosure proceedings against you and auction your property at a foreclosure sale.

North Carolina foreclosures are conducted by non-judicial foreclosure. Non-judicial foreclosures may be conducted if there is no power of sale clause in the deed of trust.

 Notice Requirements for Foreclosure in North Carolina

Prior to initiating foreclosure, the attorney conducting the foreclosure must send the notice of foreclosure to the borrower and lien holders twenty days prior to the sale, publish it once a week for two weeks in a newspaper of general circulation in the county where the property is located, and post it at the courthouse at least 20 days prior to the sale. The last publication cannot be less than ten days prior to the sale.

North Carolina Deficiency and Anti-Deficiency Laws

The lender may obtain a deficiency judgment if the property is sold at a public sale for less than the loan amount.

North Carolina Redemption Rights

There is a 10 day right of redemption after the sale for the borrower to redeem the property by paying the amount owed plus costs and fees.  Any party may enter an upset bid during that period by submitting a deposit of at least 5% of the bid to the county clerk. 

North Carolina Assistance, Special Programs, Government Help, and Law Updates

Foreclosure Programs:

• North Carolina Foreclosure Avoidance Counseling -HUD
• The Home Affordable Mortgage Modification Program
• The Home Affordable Refinance Program
• The Home Affordable Foreclosure Alternatives Program
• FHA Secure
• Hope for Homeowners

Foreclosure Lawyer

North Carolina foreclosure laws are complex. It is recommended that you consult with a foreclosure lawyer who can advise you about options to avoid foreclosure including refinancing, reinstatement, deed in lieu, mortgage modification, short sale or bankruptcy.