North Carolina residents who are unable to pay their mortgage will eventually face foreclosure. This is a specific method of enforcing payment by a mortgage lender. The lender will enforce the lien against your home and take over as the property owner. The lender will typically sell the home and use the proceeds to pay off the remaining loan amount that you owe. It’s important to understand your rights in this process.
Lenders must always go to court first
Your mortgage lender cannot sell your home if you default on your payments until it goes to court. The court must permit your mortgage lender to sell the home before it is legally able to do so. Most courts require that the mortgage lender send out a notice to the borrower at least 45 days before filing for foreclosure proceedings.
Going to special proceedings
After a mortgage lender files for a foreclosure hearing, a date and time will be designated by the court. The court hearing in this particular case is referred to as special proceedings. The mortgage lender, borrowers and any other property owners will be notified by the court of the date and time of the special proceedings.
Notifications usually take the form of a court summons that is hand-delivered to the various parties by an authorized individual. In the event that a summons cannot be hand-delivered, the sheriff may place the notice in a conspicuous place at the property. All special proceeding hearings are done by the Clerk of Superior Court or an Assistant Clerk of Superior Court.
As a homeowner, it’s important that you understand the foreclosure process. Getting behind on your mortgage payments can spiral out of control very quickly. If you’re in default on your mortgage or have received a pre-foreclosure notice, it’s a good idea to speak with a licensed attorney about your situation.