Redemption and Deficiency Judgments in North Carolina
Whether you can buy back your home after a foreclosure sale in North Carolina, and whether the lender can sue for what's still owed.
Short answer: After a power-of-sale foreclosure sale, anyone may file an upset bid (at least 5% higher, minimum $750) within 10 days after the report of sale or the last upset bid. N.C. Gen. Stat. §§ 45-21.27, 45-21.29A, 45-21.20
| Redemption after the sale | After a power-of-sale foreclosure sale, anyone may file an upset bid (at least 5% higher, minimum $750) within 10 days after the report of sale or the last upset bid. If no upset bid is filed in that period, the rights of the parties to the sale become fixed. Until then, the owner can stop the sale by paying the full secured debt and the sale expenses. No official page read describes a separate redemption period after the upset bid period ends. |
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| Deficiency judgments | Limited. A lender may not get a deficiency judgment on a seller-financed purchase-money mortgage or deed of trust whose note shows on its face that it is for the balance of the purchase price. When the lender itself buys the home at a power-of-sale foreclosure and then sues for a deficiency, the borrower may defend by showing the home was worth the amount of the debt or that the bid was substantially less than its true value. A person obligated on the debt who was not served with the notice of hearing is not liable for any deficiency. Fair-value defense: https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_45/GS_45-21.36.html |
More North Carolina foreclosure & homeowner law
- How Foreclosure Works in North Carolina
- HOA Liens and Foreclosure in North Carolina
- Getting Your Home Back After a Tax Sale in North Carolina
- All North Carolina foreclosure & homeowner law rules
FAQ
Is there a right of redemption after foreclosure in North Carolina?
After a power-of-sale foreclosure sale, anyone may file an upset bid (at least 5% higher, minimum $750) within 10 days after the report of sale or the last upset bid. If no upset bid is filed in that period, the rights of the parties to the sale become fixed. Until then, the owner can stop the sale by paying the full secured debt and the sale expenses.
Can the lender come after you for the rest of the loan after foreclosure in North Carolina?
Limited. A lender may not get a deficiency judgment on a seller-financed purchase-money mortgage or deed of trust whose note shows on its face that it is for the balance of the purchase price. When the lender itself buys the home at a power-of-sale foreclosure and then sues for a deficiency, the borrower may defend by showing the home was worth the amount of the debt or that the bid was substantially less than its true value. A person obligated on the debt who was not served with the notice of hearing is not liable for any deficiency.
General legal information, not legal advice. Laws change and local rules can differ; check the linked official source or talk to a lawyer about your situation.