If you are facing foreclosure in North Carolina, it’s important to understand some of the basics, including:
- the most common type of foreclosure procedure (judicial v. nonjudicial) used in North Carolina
- how much time you have to respond
- your rights and protections in the process, and
- what happens afterwards (for example, whether you’ll be liable for a deficiency judgment).
Below we have outlined some of the most important features of North Carolina foreclosure law. Keep in mind that this is just a summary; we’ve included statute citations so you can get more details from the laws themselves. And be sure to check out Nolo’s extensive Foreclosure section, where you can find information about all aspects of foreclosure, definitions of foreclosure terms (like redemption and reinstatement), and options to avoid foreclosure.
|Common type of foreclosure process||Nonjudicial: under power of sale in deed of trust Property cannot be sold until the court clerk holds a hearing, reviews foreclosing party’s paperwork, and certifies sale.|
|Time to respond||At least 45 days after sending notice to homeowner explaining how to contact HUD-approved housing counselor, foreclosing party must give homeowner notice of default 30 days before notice of hearing. Notice of hearing must be given 10 days before the hearing. If foreclosure is approved at the hearing, homeowner must be served with either a 20-day notice of sale (if served by posting and publication) or a 10-day notice of sale (if served by mail).|
|Reinstatement of loan before sale||No|
|Redemption after sale||Available within 10 days after the sale|
|Special protections for foreclosures involving high-cost mortgages||North Carolina High Cost Mortgage Act applies only to loans that are for less than $300,000, secured by a personal residence, and qualify as a mortgage under HOEPA (see Ch. 7). Violations include lack of due diligence regarding borrower’s ability to repay the loan and failure to secure a certificate of HUD-certified counseling before signing the loan. Liability is limited to original parties to the loan, and borrower can sue only for money; law can’t be used to prevent foreclosure. N.C. Gen. Stat. § 24-1.1E|
|Special state protections for service members||None|
|Deficiency judgments||Not allowed in nonjudicial foreclosures|
|Cash exempted in bankruptcy||$5,500 for one person, $11,000 for a married couple|
|Notice to leave after house is sold||New owner must give former owner a 10-day notice to quit (leave) before going to court for a writ of possession and summary eviction.|
|Foreclosure statutes||N.C. Gen. Stat. §§ 45-21.1 to 45-21.33, 45-100 to 47-107|