Guilford County, North Carolina Foreclosure Process
RealtyTrac reports that more than 3,000 North Carolina homeowners faced foreclosure in February 2011, including 316 in Guilford County. Since the mortgage crisis of 2008, the state legislature has passed multiple bills to help curb the number of foreclosures throughout the state. North Carolina state laws dictate the process lenders must use when foreclosing on a home in Guilford County. The process can take more than three months to complete.
Other People Are Reading
-
Non-judicial Foreclosure Process
-
The majority of North Carolina mortgage contracts include a "power of sale" clause, which allows the lender to foreclose on a home when a borrower defaults on a loan without a judge's ruling. The lender must first file for a "notice of hearing" with the court clerk in the Superior Court. The lender must send a copy of the notice of hearing to the borrower, deliver in person or through the mail. The law requires the borrower to receive notice at least ten days before a hearing. At the hearing, the court clerk oversees the proceedings and determines the validity of the lender's claim. In cases deemed valid for foreclosure, the clerk schedules a foreclosure sale.
Notice of Sale
-
Before a foreclosure sale can take place, the lender must notify the public and the borrower by publishing a "notice of sale." The notice of sale must appear in a local newspaper, published one time per week, with two publications over a two-week period. The lender must also send the borrower a copy of the notice of sale through the mail. The notice of sale must include the location, time and date of the sale and a property description. The lender must notify the borrower a minimum of 30 days before the foreclosure sale.
-
Foreclosure Sale
-
The foreclosure sale takes place at the county courthouse, according to the time and date specified in the notice of sale. The lender's agent or a foreclosure trustee conducts the sale, which follows an auction format. Members of the public can bid on the property and the auction must take from 10:00 a.m. to 4:00 p.m., Monday through Saturday. The law requires the highest bidder to pay a deposit after the sale, typically five percent of the bid.
Upset Bids
-
After the auction, the court clerk does not immediately assign the title of the property to the high bidder, but must wait 10 days. During the 10 day period, another bidder can raise the bid, a process referred to as an "upset bid." The upset bidder must raise the bid by at least 5 percent to obtain the property.
Right of Redemption
-
North Carolina extends a "right of redemption" to borrowers who lose their homes, a process by which they can reclaim their homes after a foreclosure sale. During the 10-day waiting period following the foreclosure sale, the borrower can repay all funds owed, plus any foreclosure costs incurred by the lender, and reclaim the property.
-
References
- RealtyTrac: February 2011 Foreclosure Rate Heat Map
- RealtyTrac: North Carolina Real Estate Trends
- RealtyTrac: North Carolina Foreclosure Laws
- Poyner Spruill LLP: North Carolina Real Estate Foreclosure Procedure
- Foreclosure: North Carolina Foreclosure Laws
- Guilford County Homeownership Center: What is North Carolina Doing About Foreclosures?
Resources
- Photo Credit David Sacks/Lifesize/Getty Images
