HARNETT COUNTY TAX FORECLOSURE PROCEEDINGS ON REAL PROPERTY North Carolina law provides Cities and Counties two different methods to enforce tax liens and sell real property for the collection of delinquent ad valorem taxes. The bidder then has two hours after the conclusion of the public sale to come to the attorney’s office replace and exchange the personal check for cash or cash-equivalent funds. North Carolina taxpayers are choosing a faster, more convenient way to file their State and Federal individual income tax returns by electronically filing. HUD-approved housing counseling agencies may be able to provide assistance or work with a mortgage company to obtain a loan modification. The main purpose of the foreclosure process is to notify all interested parties that any legal interest they may have in the property will be terminated and extinguished if a tax, city lien or assessment foreclosure sale of the property is completed. Assistance may also be available to borrowers from the North Carolina Foreclosure Prevention Fund using the link provided on the Housing website. Our firm represents county and municipal governments tasked with selling foreclosed homes. The redemption price is equal to the taxes, city liens and/or assessments, interest, fees and costs of the foreclosure proceeding to the date of the redemption (fees including the 5% commissioner fees on the sale price or current upset bid price at the time of redemption). The City of Durham Collector of Revenue sends out bills and other collection letters. There are two methods to foreclose a tax lien: There is no court hearing in this method of foreclosure prior to entry of a foreclosure judgment. If no upset bids are filed, OR if upset bids are filed and the period for filing additional upset bids has ended with no other upset bids being filed, THEN the foreclosing attorney will contact the high bidder to inform them of the successful bid and to demand the balance of the bid price (or balance of the upset bid price) over and above the initial deposit (or upset bid deposit). Parties wishing to redeem property from tax, city lien or assessment foreclosure and stop the foreclosure process must contact the assigned attorney for a redemption payoff figure. COVID-19 Get the latest information on tax … Judicial Foreclosure The judicial process of foreclosure, which involves filing a lawsuit to obtain a court order to foreclose, is used when no power of sale is present in the mortgage or deed of trust. Reinhardt Law Offices, PLLC, also dbaReinhardt Closing and Property Law ServicesNorth Carolina State Bar Certified Specialist in Real Property Law, 3805 University Drive, Suite E, Durham, NC 27707                                     919-687-4050, Link to Sale Page for tax and lien foreclosure sales being handled by Reinhardt Law OfficesLink to Tax and Lien Foreclosure Website of Commissioner R. Douglas DavisLink to City and County of Durham Surplus Properties Pages. Once the work is complete, an assessment bill is calculated based on the linear footage of the taxpayer’s property next to the improvement. Tax Sale Secrets 7,419 views. Possibly. With respect to city liens, this represents liens filed with the Register of Deeds for either property cleanup, property stabilization and repair, or structure demolition. The 10% deposit has to be cash, or cash equivalent, such as certified funds or money order. One of the many responsibilities of a homeowner is paying his property taxes on time. The redemption price is equal to the taxes, interest, fees and costs of the foreclosure proceeding to the date of the redemption. The upset bid period runs for ten days. In Rem Tax Foreclosures in North Carolina Instead of filing a lawsuit, the tax collector can choose to use an alternative process called an “in rem” foreclosure. Right of the holder to foreclose under the deed of trust. The trustee is a neutral third party that holds legal title to real property as security for a debt until the debt is satisfied. What happens to property which is deeded to the County or City of Durham? Borrowers who have missed a mortgage payment or expect to miss a mortgage payment because of financial difficulties should contact their mortgage company or servicer. Upon completion of the sale, the trustee or substitute trustee will transfer title or ownership of the real property to the purchaser by executing a trustee’s deed. North Carolina does not sell Tax Liens or Tax Certificates over the counter. Contact Info. Learn about North Carolina foreclosure laws, the foreclosure timeline and notice of sales. Yes. If a borrower fails to appear at the hearing, the clerk of superior court may hear the case based on the evidence presented by the trustee or substitute trustee, lender’s attorney, or other witnesses. For almost all the segments of the property tax, January 1 is the tax lien date. When a property tax bill becomes delinquent, the Tax Office tries various methods to notify the taxpayer and potential owners about the delinquent bill to see if the bill can be collected without the extreme remedy of foreclosure. Tax, City Lien and Assessment Foreclosure sales usually occur once a month, generally on the second Tuesday of the month. If the bond is not paid, a judge can still hear the appeal, but the trustee can proceed with a foreclosure sale before a judge decides the appeal. Out-of-court proceedings are most common. The N.C. Department of Revenue does not send property tax bills or collect property taxes. Though, North Carolina nonjudicial foreclosures usually involve one court hearing (see below). Once upset bids begin, no further bids or deposits are accepted by the foreclosing attorney. I will update this post as any new information becomes available; feel free to reach out to me directly with any information and I will consider adding it to the post. In North Carolina, tax liens cannot be purchased. These surplus funds do not go to the City or County of Durham, but are instead are subject to the claims of the defendants in the foreclosure case. Each new upset bid starts a new round of bidding, and another 10-day period begins to run from the date of the most recent upset bid. The redemption price is equal to the taxes, interest, legal fees, and costs of the foreclosure proceeding to the date of the redemption. Learn what foreclosure is and what it means as a home owner or buyer. But even in the nonjudicial process, a court has a minor role. The procedure for power of sale foreclosure is contained in Article 2A in Chapter 45 of the North Carolina General Statutes. Auction held on the courthouse steps. The foreclosure process in North Carolina begins when a borrower fails to make payments on a mortgage loan, or an owner fails to pay property taxes or water/sewer bills, or any other lien holder pursues its right to collect the debt secured by the property. A lawsuit is filed to obtain a court order of foreclosure, and the foreclosure sale process is directed by the court. These funds must be paid in cash or certified funds to the foreclosing attorney within three (3) days after the demand for the additional funds is made. A tax lien may be foreclosed by civil action pursuant to North Carolina General Statute §105-374. The Defendants will be all of those parties found by the record title search to be interested parties in the real estate (owners, mortgage holders, etc.) 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. You selected North Carolina foreclosures.Now select the county in which you want to look for a property. See the Lawsuits Help Topic for more information on civil cases. These assessment bills are sent to the landowners as part of a confirmation process by the City Council. The deed will be recorded in the county register of deeds office. A power of sale foreclosure is a contractual right under the terms of a deed of trust which gives the trustee the power to sell the real property on behalf of the lender if the borrower defaults. North Carolina law provides Cities and Counties two different methods to enforce tax liens and sell real property for the collection of delinquent ad valorem taxes. All sales are conducted by RKS Law Firm and McGeachy, Hudson & Zuravel Law Firm on the front steps of the Hoke County Courthouse at 304 North Main Street, Raeford North Carolina. The minimum bid is equal to all the taxes, city liens and/or assessments, interest, fees and costs of the judgment of sale, as well as the additional costs and fees of the sale itself. How many years do property taxes have to be in arrears before the County begins the foreclosure process? The Tax Department only forecloses if there is no response from the property owner after action is taken or if the property owner does not follow through with an agreed upon payment arrangement made with the Tax Department. How: The actual process of setting up a demand letter process and/or a mortgage-style tax foreclosure process in your county and/or municipality is set forth in a Basic Procedures Outline that we will send you upon request. See above for resources for borrowers having difficulty paying their mortgages. Prior to the sale date, the Commissioner (R. Douglas Davis, 919-477-0280), personally visits each property up for sale, and assembles some very basic information about it (tax value, location, GIS report, etc.). One of the collection tools used for these efforts is the employment of private attorneys to commence formal foreclosure proceedings under North Carolina General Statutes 105-374 against real property on which there are delinquent unpaid property taxes, delinquent … Borrowers may consult an attorney licensed in North Carolina about their legal options during this period. A judge in a foreclosure by civil action has broader jurisdiction and authority than the clerk does in a power of sale foreclosure. Because foreclosure cases are civil, not criminal, no one is arrested for failure to appear in court. Both judicial and non-judicial processes are followed in North Carolina. If the debtors occupy the real property as a principal residence, the clerk of superior court must continue a hearing for up to 60 days from the date of the original hearing date if, at the commencement of the hearing, the clerk finds there is good cause to believe that additional time or additional measures have a reasonable likelihood of resolving the delinquency without foreclosure. If you anticipate missing a payment on your mortgage then you need to contact your lender before you even miss a payment. For more details, see our Surplus Property Page, North Carolina State Bar Certified Specialist in Real Property Law, Link to Sale Page for tax and lien foreclosure sales being handled by Reinhardt Law Offices, It is the duty of each owner of property to keep the Tax Office notified of address changes and to know that taxes are payable each year, regardless of whether a billing was received, How do people find out about upcoming tax, city lien or assessment foreclosure sales, What happens to property which is deeded to the County or City of Durham, Link to Tax and Lien Foreclosure Website of Commissioner R. Douglas Davis, Link to City and County of Durham Surplus Properties Pages. Mr. Reinhardt has been doing this work continuously for the Tax Office since 1989 (there was a 5 year hiatus from 1997 to 2002), and for the City of Durham (on liens and assessments) since 2006. After that, the sale stands open for 10 days for possible increased upset bids. This is because property tax liens, city liens and special improvement assessment liens are ahead of and superior to all other liens, except (in a limited extent) to filed income tax liens held by the North Carolina Department of Revenue. Summary. General Information about the Tax Collection Foreclosure Process. As of December 20, Raleigh, NC currently has 172 tax liens available. However, a person seeking to have the judgment set aside must appear before the clerk on the motion prior to execution on the judgment. It is clear for any foreclosure in North Carolina to proceed in the near future it will require careful analysis as to why the restrictions imposed by the order of the Chief Justice and the federal moratorium do not apply. 2. (N.C. Gen. Stat. Can the tax, city lien or assessment foreclosure sale be stopped or redeemed from sale? For city lien and/or assessment foreclosures being handled by our office, we post those sales on our website here. What is the legal effect of a tax, city lien or assessment foreclosure filing? Understanding the foreclosure procedure in North Carolina is a significant piece of exploring your own home foreclosure. 45-102 was provided in all material respects and certain statutory time periods have elapsed, and. The matter is filed as a special proceeding. In power of sale and civil action foreclosures, real property cannot be sold without first getting a court order permitting a sale. This is only for informational purposes, to allow the Commissioner to tell people prior to or at the sale something about the properties and where they are located. In North Carolina, lenders may foreclose on deeds of trusts or mortgages in default using either a judicial or non-judicial foreclosure process. Anyone interested in acquiring property from the County of Durham or City of Durham should contact their respective Real Estate Administrators. What happens after the filing of the tax, city lien or assessment foreclosure complaint? Any bidder at either public sale or upset bid who doesn’t bring in the purchase price upon demand by the attorney will be subject to immediate loss of all deposits, as well as civil and/or contempt prosecution for failure to make the bid. Before we make a plunge… Understanding the Foreclosure Process in North Carolina What is foreclosure at any rate? We also provide rent to own homes, short sales homes and preforeclosures in North Carolina (NC) along with bankruptcy homes and government HUD foreclosure listings. If, at the postponed sale, there are still no bidders, then the County (or City’s) minimum bid will be the successful bid. What happens if no one bids on the property at the foreclosure sale? General Information about the Tax Collection Foreclosure Process. You can view a listing of, The NC Foreclosure Prevention Fund, managed by the North Carolina Housing Finance Agency, provides financial assistance to some homeowners who are having temporary difficulty paying their mortgages. The summons and complaint will be delivered to each defendant by the sheriff, or by other approved means of service of process in civil lawsuits (FEDEX, certified mail, process server, etc.). Courtesy letter sent asking taxpayer to contact our Delinquent Tax Foreclosure Officer to prevent foreclosure. A clerk of superior court may only hear and decide certain factual and legal issues in a power of sale foreclosure proceeding. Return to Top. A promissory note is a legal document where one party promises to pay a sum of money to another party at a fixed time, on demand, or in regular intervals. Tax Foreclosure Sales. Notice of hearing to those entitled to notice. 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