A Guided Tour of Foreclosure Proceedings in North Carolina

Struggling with the looming shadow of foreclosure in North Carolina? I'm Amy Ellis, and as a licensed realtor, I've witnessed the distress and confusion it causes. Tune in to get a firm grasp on the non-judicial foreclosure process that governs our state. This episode is your guiding light through the maze of legal steps, from the chilling Notice of Default to the heart-pounding auction gavel. Hear firsthand accounts, professional insights, and arm yourself with the knowledge needed to navigate these turbulent waters or assist someone who is.

This podcast isn't just a rundown of cold facts; it's a lifeline for those caught in the undertow of mortgage woes. I'll break down the complexities of the foreclosure timeline, ensuring you understand each critical phase and its impact on your chances of keeping your home. Whether you're a North Carolina resident facing this ordeal or simply interested in real estate's harsher realities, this discussion is a beacon of clarity in the murky depths of property law. Join us and emerge equipped to confront foreclosure with confidence and strategic foresight.

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Amy is a licensed Realtor in North Carolina. She is affiliated with Buy Homes with Rose LLC brokerage. This is not a solicitation to get a listing. This is a podcast to provide you with options for your situation.

Episode Transcript

Speaker 1 (00:20):
Welcome to the Forclosure Chronicles podcast,
where we provide and helphomeowners that are facing
foreclosure with options so thatthey can make the best decision
for their situation or exit theproperty with dignity.
I am your host, amy Ellis, andtoday I want to discuss the

(00:48):
process of foreclosures, inparticular, in North Carolina.
Let me first state that I amnot an attorney, so you may want
to get an attorney if you arefacing foreclosure.
However, I am a licensedrealtor in North Carolina.

(01:14):
My broker is by Holmes withRose LLC.
Again, I am not an attorney andwhat I'm presenting here today
is just the process, because Iwas in a mastermind the other
day and we were discussing how alot of homeowners who are

(01:38):
facing foreclosure they're notaware of the process and they
kind of don't know what to do.
You know they're thinking thebank's on their side giving them
time, or they're going throughthe steps thinking that the bank
has their back, all to find outthat, hey, they have an auction

(02:01):
date coming up real soon.
So, with that being said, thisgroup, this mastermind, and we
are all over the United Statesof course North Carolina, where
I am licensed and helphomeowners in we have people in
Florida, michigan, chicago,california.

(02:24):
So we have them all over theworld, excuse me, all over the
United States.
But the main thing is theforeclosure process.
Depending on which state you'rein will dictate what type of
foreclosure process that you'llbe going through, and there are

(02:47):
two types judicial andnonjudicial.
And in this episode, I am goingto focus on nonjudicial,
because that's what NorthCarolina is, if you are
listening and you're not, andyou don't have property in North
Carolina.
First of all, thank you forlistening to the Forclosure

(03:08):
Chronicles podcast and to useGoogle to figure out if where
your property is located, ifit's in a judicial or
non-judicial state.
So the main thing with judicialis that process is where the

(03:29):
lender has to file a lawsuit incourt in order to foreclose.
Now, here in North Carolina, thejudicial, non-judicial
foreclosure.
It is a legal process thatallows lenders to foreclose on
the property without involvingthe court system, meaning it's

(03:54):
not heard in front of a judge.
It's typically heard in frontof a court, county clerk and, of
course, this process isgoverned by specific laws and
regulations to ensure fairnessand transparency.
Excuse me.
The non-judicial foreclosure istypically initiated when a

(04:14):
homeowner defaults on theirmortgage.
The lender, also known as themortgagee, has the right to
enforce the terms of themortgage agreement and recover
the outstanding debt by sellingthe property.
Unlike judicial, like I statedearlier, which involves the
court proceedings, non-judicialallows for a faster, more

(04:37):
streamlined process and that'sprobably why you know, if you're
about five to six months behind, you start getting all these
notices and that saying you knowthe sheriff's knocking on your
door with, excuse me, a right tocure, a letter from the
attorney's office and you'relike what's going on?

(04:58):
And a couple of days, a coupleof weeks after that, you have a
hearing and then that saying youknow, boom, you got a sell date
.
So that's why the process goesso fast and you probably don't
know what to do and orunderstand.
So that's why, again, thenon-judicial process for North

(05:20):
Carolina, it is going to go alittle bit quicker because it
bypasses being heard in court.
So now the steps that areinvolved in the non-judicial
process.
It's important to note thatthese steps, of course, may vary
slightly depending on thespecific circumstances in the

(05:43):
terms of the mortgage agreement.
However, I'll provide a generaloverview to give you a sense of
what to expect.
The first step is the lender isissuing a notice of default.
This notice informs thehomeowner that they have

(06:03):
defaulted on their mortgagepayments and provides a specific
timeframe within which theymust cure the debt.
Cure the debt means bring it upto date.
If the homeowner fails to curethe debt within a specific

(06:24):
timeframe, the lender willproceed with the next steps
issuing a notice of sale.
This notice announces thelender's intention to sell the
property at a public auction.
It includes details such as thedate, time and location of the
auction.

(06:44):
Prior to the auction the noticeof sale must be published in a
local newspaper for a certainperiod of time, and that's a law
in North Carolina.
This publication serves tonotify the public and interested
parties about the upcomingforeclosure sale.

(07:05):
So are you wondering why you'regetting all these phone calls,
maybe text messages, postcards,letters?
Will buy your house quick.
We buy your house for cash.
We will do a quick close.
Well, are you wondering what inthe world?
How do they know?
Let me read that one more timePrior to the auction the notice

(07:31):
of sale must be published in alocal newspaper for a certain
period of time, as required byNorth Carolina law.
Now, is it law that thesepeople that you know, people,
advertise to you?
No, however, it has to bepublished and whatever is

(07:54):
published, that's made public,is gained for anyone.
Excuse me.
So, on the schedule auctiondate, the property is sold to
the highest bidder.
Of course, the winning biddermust pay the purchase price and
cash or certified funds, and ifno bidder bidder is found, the

(08:17):
property reverts back to thelender where it now becomes an
REO or real estate ownedproperty.
So that, in a nutshell, is thenon-judicial foreclosure process
.

(08:37):
So what does that look like on atimeline basis?
I know you're like Amy, okay, Ikind of get what you're saying,
but let's, let's talk thetimeline.
What does that look like?
Okay, again, depending on yourcircumstance and the type of
mortgage person you lender youhave, the timeline may vary,

(08:59):
okay, but typically it takesaround 120 days from the date
the first payment is missed towhen the property is sold at a
foreclosure sale.
Again, the timeline may varydepending on several factors,
and those factors can includethe lender's policies and

(09:21):
procedures, of course, the typeof foreclosure and the
borrower's actions and responsesduring the process.
Okay, let's remember there areoptions.
Once you have defaulted, you dohave options.
Okay, of course, if you staytuned to more episodes, you will
figure out and find out whatthose options are All right.

(09:44):
So the timeline day one to 15,you miss a payment, the lender
usually sends a notice ofdefault or a demand letter and
this also gives you a deadlineto bring your account current.
Now, granted, day one to 15,.
Sometimes it all depends onwhen I pay period falls.
Sometimes we get paid on thefirst or the 15.

(10:05):
So you know, a little slap onthe hand.
Okay.
So now day 30 to 45,acceleration and notice of sale.
Now, if you fail to bring up,bring your account current, you
know, from day one and now youare in day 45, the lender will

(10:28):
accelerate the loan and thiscould mean that the entire
balance of the loan is due.
Excuse me Now.
The lender then will file anotice of sale with the county
clerk, and this notice willinform you of the time and place
of the foreclosure sale.
Now again, these timelines anddays are.

(10:50):
They can vary depending, again,on the situation and
circumstances.
This is just a highlight.
So now, day 60 to day 105,notice of hearing.
The county clerk will mail anotice of hearing to you, the
borrower, at least 20 daysbefore the hearing, and the

(11:14):
hearing will take place in thecounty where the property is
located and it will determinethe foreclosure sale, how the
fore excuse me, it willdetermine whether the
foreclosure sale should proceed.
Ok, so that's the notice ofhearing, day 120, the

(11:34):
foreclosure sale.
And that's the sale, where itwill usually occur at the
courthouse steps.
And of course, whoever bids onit you know has a process will
get it and if it's not sold atthe sale or at the courthouse
steps, then it will revert backto the lender.

(11:56):
Of course there's some morethings that go on with this, of
course, like if there's someonegets it and then there's an
upset bid, let's say, let's sayI bought your property, right?
Well, I have 10 days after theforeclosure sale before I can
actually have that property.

(12:18):
So that's 10 days where JoeSmith can come in and say you
know what I'm going to outbidher, and he comes in, presents a
check, that's, I think, what10% or more of what I offered,
and then now the 10 day clockstarts over again and then if I

(12:45):
might know I want this property,then I'll go back and bid 10%
or whatever the percentage ismore to get Joe Smith out the
way.
So there is a upset biddingprocess and it typically lasts
for 10 days after theforeclosure sale.

(13:07):
So that, in a nutshell, is thenon-judicial foreclosure process
for the state of North Carolina.
Again, I wanted to bring this toyour attention as homeowners
who are going throughforeclosure because, again, like
I stated, in our mastermind, wewere talking about how these

(13:33):
homeowners are clueless.
Not saying nothing's wrong withnot knowing, but that's why I'm
doing this podcast, so I canmake you aware of what's going
on in the future, to let youknow that you have options, let
you know that there is a process.
It's just not you're gettingyou know that notice from the

(13:56):
sheriff.
There is a definite process tothe foreclosure and hopefully
this information has beenhelpful.
So thank you so much forjoining me on the foreclosure
Chronicles podcast and keeplistening because it's getting

(14:18):
good.
I have an investor that helphomeowners in foreclosure.
I have a HUD counselor that hashelped homeowners in
foreclosure and few and moreepisodes.

(14:40):
Hopefully we'll be speakingwith a credit repair per company
that can help, because we alsogot to think about what's after
the foreclosure.
You know, I know we're focusingon the options you have now to
either keep the home or exit theproperty with dignity.
But then what's after?

(15:00):
You know what does it look likeafter.
So just know I'm working behindthe scenes to get you that
information, making connections,getting the resources, like I
said, credit repair, because ofcourse you know your credit is a
little bit blemished.
Hopefully I should have someproperty management companies or

(15:24):
someone that can helphomeowners find a place after
they exit their property.
So just stay tuned.
You're not alone during thistime.
Again, thank you for listeningto the For Closure Chronicles
podcast.
I'm your host, amy Ellis.

(15:45):
Until next time.
Thanks for listening.