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What Homeowners in North Carolina Can Expect During the Foreclosure Process

If you’re concerned about your property going into foreclosure due to circumstances beyond your control, the optimum scenario would be to work with your lender for a resolution before things go any further. However, going through the foreclosure process can be made easier when homeowners understand what lies ahead, so read on as we explore what homeowners in North Carolina can expect during the foreclosure process. 


Per the North Carolina Judicial Branch, a default is a borrower’s failure to fulfill an obligation under a promissory note or deed of trust, usually by failing to make required payments. A default is the trigger that allows the beneficiary under a deed of trust to authorize a trustee to begin foreclosure proceedings.

Most lenders understand that homeowners in North Carolina may go through temporary financial hardships, often having a grace period for these situations. However, suppose you’ve fallen behind and don’t see any options to catch back up on the horizon. In that case, you can expect the lender to contact you in every way possible during the foreclosure process, attempting to work out a payment arrangement to avoid further action. 

Pre-Foreclosure Notice

Lenders are required to send a pre-foreclosure notice to delinquent borrowers of s home loan at least 45 days before filing a foreclosure proceeding in North Carolina. This notice informs borrowers of their options that may be available to to help them stay in their homes such as loan modification, forbearance or a repayment plan.

Mortgage Reinstatement

Homeowners in North Carolina who have entered the foreclosure process but can catch up with past due payments, including interest and any penalties, may be able to stop the process at this point by asking the lender to reinstate the mortgage. If approved the lender may be willing to move all of the back payments interest and penalties to the end of the repayment schedule and allow the homeowner to start making regular payments again. In this case they would be able to return to paying their mortgage as usual after the lender approved the reinstatement. This is especially helpful when whatever the financial reason for falling behind on payments no longer exists, but the extra money to pay the arears is not available.

Notice of Hearing

Once 45 days have passed after the pre-foreclosure notice, the next step homeowners in North Carolina can expect during the foreclosure process is the notice of Hearing. A “power of sale” foreclosure is initiated when the trustee files a “notice of hearing” with the clerk of superior court in the county where the subject real property is located. The notice of hearing must be served on borrowers, record property owners, and anyone else required under the deed of trust.

Foreclosure Hearing in North Carolina

In a power of sale foreclosure, the lender must prove that it is authorized to foreclose on the real property. In order for the trustee or substitute trustee to obtain an order allowing the sale of real property, the clerk must find the existence of the following:

  1. A valid debt in which the party seeking to foreclose is the holder,  
  2. Default by the borrower,
  3. Right of the holder to foreclose under the deed of trust,      
  4. Notice of hearing to those entitled to notice,
  5. That the mortgage debt is not a home loan, or if it is a home loan, that pre-foreclosure notice under G.S. 45-102 was provided in all material respects and certain statutory time periods have elapsed, and,
  6. That the foreclosure is not barred under G.S. 45-21.12(A), a statute which provides protections in certain circumstances to specified military borrowers.

A date for the foreclosure sale is often, but not always, scheduled at the end of the foreclosure hearing before the clerk of superior court, if the clerk enters an order allowing the trustee to proceed with foreclosure the notice of sale will occur next.

Notice of Sale

The notice of sale must be served according to North Carolina statute and posted at the courthouse for at least 20 days before the scheduled sale date and must be advertised in a newspaper. Once scheduled, the foreclosure sale date can later be postponed or canceled by the lender. A lender may choose to postpone or cancel the sale if the borrower is actively working with the lender to save the property.


During the foreclosure process, the final step for homeowners in North Carolina is the auction, where your property will be sold to the highest bidder. Should the home not sell at auction, it will become what is known as an REO or real estate owned property, converting back to the lender. If you have not vacated the premises, you can expect the buyer to serve an eviction or writ of possession to remove you from the property . With an REO, the lender may attempt to assist you with moving, offering cash for keys to attain possession. 

Another Option

For homeowners in North Carolina facing foreclosure, there’s another option: a direct sale to local professional buyers like those at Zack Buys Houses. First, the professional buyers at Zack Buys Houses will detail the expenses and what you’d profit by listing your property, advising you of the average days on the North Carolina real estate market. Then, professional buyers from Zack Buys Houses provide you with the numbers used to make their offer to buy your home directly, which we want you to agree is fair. And we’ll provide you with a guaranteed closing date, often within days. We do this at Zack Buys Houses for two reasons. First, we want you to make an educated decision about what is best for your situation. Secondly, at Zack Buys Houses, we are your neighbors here in North Carolina, living and working alongside you, a part of the community; we want you to feel good about the deal long after you’ve left the closing table. 

Zack Buys Houses

Selling directly to Zack Buys Houses can turn everything around for homeowners in North Carolina facing foreclosure; our goal is to save you time and money. A direct sale means no commissions, closing costs, or hidden fees; our policy at Zack Buys Houses is complete transparency and no pressure. And, to save you even more money, at Zack Buys Houses, we buy houses as-is for cash in North Carolina, meaning you can keep your wallet in your pocket and forget about prepping, repairs or cleaning. You can even pick the date for your closing with a direct sale to a professional buyer from Zack Buys Houses, talk to us about the arrangements that would work best for you. Call Zack Buys Houses at ‪(704) 769-0141‬.

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