North Carolina foreclosures: Knowing the laws can work for you

Prior to looking out for North Carolina foreclosure listings, try learning the laws of foreclosures in the state. This step is going to help you in getting a clear understanding of the procedures that have to be followed for buying foreclosed properties in the state of North Carolina.

Judicial as well as non-judicial foreclosures

In North Carolina, foreclosed homes are closed using judicial as well as non-judicial foreclose procedure. When a homeowner fails to meet his mortgage loans, the lender may negotiate with the homeowner for non-judicial foreclosures. With this type of foreclosure, the paperwork required is less and the homeowner need not undergo court proceedings. Again, the buyer is also at an advantage with the property rates being the lowest.

Judicial procedure

Judicial procedures are generally followed when there are title problems. The lender files a lawsuit against the borrower and a foreclosure sale is directed by the court. Borrower has to answer the court and abide by the court proceedings for his foreclosed home.

Common non-judicial foreclosures

In North Carolina, non-judicial foreclosures are very common, as both the lender and borrower need not have to undergo judicial proceedings. This saves hassle for both the parties. In order to use non-judicial procedure, there must be a clause in the mortgage allowing lender to sell the property when borrower defaults. Before power of sale foreclosure can take place, preliminary hearing has to be conducted. The lender has to inform the borrower about the amount due along with expenses 10 days before hearing. Once the notice has been issued, country clerk determines if a foreclosure sale is required. Foreclosure time is generally three to four months. If any information about foreclosure procedure is specified in the deed of trust, then the procedure has to be followed.

Bidding for foreclosed homes

The notice of foreclosure home has to be published in the local newspapers by the lenders. Then foreclosure sale is conducted at the courthouse. On the date of foreclosure sale, the highest bidder wins the bid. The borrower is allowed to redeem the house by paying debts along with sales cost within 10 days. Upset bids for North Carolina foreclosures are accepted for 10 days after which period, the highest bidder is chosen as the winner.