Information for Foreclosure Bidders

Some creditors will provide this information to the Trustee and others choose not to disclose it until the sale. Opening bids for property tax foreclosures are generally available the day before the sale. Both the Commissioner and the tax office will have that information when it is available.

The Trustee will not accept a personal check for a deposit unless the bidder has made prior arrangements with the Trustee.

No. The Commissioner and Trustee have no authority to allow potential bidders to go upon the property.

Yes. In property tax foreclosures, once all taxes, fees and costs are paid in full, then the Commissioner or Trustee will file a dismissal of the lawsuit. There is no change in the title to the property when the lawsuit is dismissed.

In bank foreclosures, if the debtor and creditor work out a mutually agreeable arrangement, then the bank can request that the Trustee stop, delay or dismiss the foreclosure.

Yes. There are many different reasons why a scheduled sale may not take place as advertised. If you will be traveling a distance to a sale, you should call our office before the sale to confirm that it has not been changed. If you let us know in advance that you are interested in a property, then we will let you know if the sale is cancelled or postponed.

The answer is maybe. Generally, buildings that are “attached” to the real estate (including mobile homes) become part of the real estate. With a “stick built” or modular home, the answer will almost always be that the structure is sold with the land. Whether a mobile home is “attached” to the land is partly a factual question and partly a legal question. One clue to whether the mobile home is attached is whether the county tax office is taxing the mobile home as part of the real estate or as personal property. When in doubt you should consult your own attorney for a legal opinion on the issue.

All Notices of Sale are posted on the bulletin board at the county courthouse and are also published in a local newspaper twice during the two weeks prior to the sale.

You can search information relative to the title of the property in the county Register of Deeds office. The county tax office will also have information on improvements, acreage and tax values. We often include the tax office identification number so that you can take the Notice of Sale to the tax office for further information.

If you bring a certified check in the amount of 5% of the maximum amount you would plan to bid, the Trustee will accept this. Any additional amount will be applied to the purchase price.

There is no limit on the number of raised bids in any sale.

You will have to raise the bid by $750.00 or by 5% whichever is greater. Then, you will pay a bid deposit of 5% of your new bid or $750.00 whichever is greater. The deposit is paid to the Clerk of Superior Court. You should contact the Clerk if you have questions about what forms of payment they will accept.

The Trustee will always notify the prior bidder by U.S. Mail. We will be glad to call or email you as well if you provide us with your contact information. You can also call the Clerk of Court and ask who has the high bid on any particular sale.

Initially you will pay a deposit for your bid. If that deposit is held by Irvine Law Firm, then it can be applied to the purchase price. If this was an upset bid and your deposit is held by the Clerk of Court, then you may have to pay the full amount to the Trustee and receive a return of your deposit after the foreclosure is concluded.

In addition to the amount of your bid, the high bidder may be required to pay certain fees or costs of the foreclosure. This will be specified in the Notice of Sale. Such costs may include any fees that have to be paid to record the deed such as the revenue stamps, recording fee and any land transfer tax and the Clerk’s assessment fee charged on each foreclosure sale.

If you are the high bidder, you will receive a letter from the Trustee outlining exactly what you need to pay in order to finalize your purchase.

If your bid is raised, then your deposit will be returned to you by Irvine Law Firm or by the Clerk, depending on who is holding it.

Not really. This is a court ordered sale and the rules of the sale are governed by North Carolina law. However, in many cases, the creditor will either have an opening bid or will be present to bid, but is not required to do so. There is no reserve or minimum price. If the creditor has an opening bid, the effect is the same as if that was the minimum or reserve bid. The Trustee may open the bidding at a certain value and solicit bids, but that is not the same as having an actual opening bid.

The successful high bidder or the Trustee can either file a separate action to evict the debtors or file a motion for a writ of possession in the foreclosure case. Following a property tax foreclosure, the successful high bidder would need to file an action to evict the debtors.

The sale is open for 10 days. Anyone can raise the bid during those 10 days. Once a bid has been in place for 10 full days, then the Trustee will contact the high bidder to obtain the funds and close out the foreclosure. See the Foreclosure Time Line for more information.

The Trustee will have several options, which may include forfeiture of the bid deposit. The Trustee may then resell the property or sue the high bidder to force him or her to pay the remaining part of their bid.

Each bid is open for 10 days for anyone to raise it to a higher bid. A “raised” bid and an “upset” bid are the same thing. In order to raise the bid, you will need to go to the Clerk of Court’s office in the county where the foreclosure is pending. The Clerk will have you fill out AOC form 403, which can be found on the NC Courts website.

The high bidder must pay a bid deposit at the sale. The deposit will be five (5%) percent of the total bid amount or $750.00, whichever is greater. The payment must be in cash or certified funds and paid immediately following the sale. The deposit should be payable to Irvine Law Firm Trust Account. The deposit must be paid at the sale prior to the bidder leaving the sale, unless prior arrangements have been made with the Trustee.

A property tax foreclosure is to collect taxes and special assessments owed to a county or town. These foreclosures are filed as civil lawsuits. However, after the Court has entered an Order allowing the Commissioner to sell the property, then the laws governing the sale are generally the same as with a bank foreclosure.

A bank foreclosure is filed as a Special Proceeding before the Clerk of Court. Once the Clerk enters an order allowing the sale, then the procedure is the same as for a property tax foreclosure.

The two procedures are different up to the point of the Order allowing the sale to proceed, but are basically the same from the time of the Order to the conclusion of the 10 day upset period.

The name and address on your bid is what the Commissioner or Trustee will use for the deed. If you want to change that information prior to preparation of the deed, you will need to assign your bid into the name you want to use for the deed.

The Notice of Sale will specify the date, time and place of the sale. Most sales are held at the courthouse in the county where the foreclosure is pending. All courthouses have a bulletin board where Notices of Sale are posted. If the sale is not held at the location of the bulletin board, then it is likely on the front steps of the courthouse. The Clerk of Court would be able to tell you where sales in that county are held.

The Trustee has no authority to give you permission to go upon the property until you have paid the full purchase price and the deed has been recorded.

In property tax foreclosure suits, if the taxes, fees and costs are paid in full before the Clerk enters the Order Confirming Sale, then the foreclosure suit will be dismissed.

In bank foreclosures, once the 10 days has expired, the high bidder’s rights are fixed and the Owner no longer has the option to pay off the debt in order to keep the property.

Once we receive the purchase amount and any fees or costs to be paid by the buyer, we can prepare and record the deed and close out the foreclosure. Once the deed is recorded, the Register of Deeds will send the original to the buyer usually within two weeks.

In property tax foreclosures, the Clerk appoints a “Commissioner” to sell the property. In bank foreclosures, the Trustee or Substitute Trustee will sell the property.

In property tax foreclosures, any deeds of trust or judgment liens that are included in the lawsuit are extinguished as a lien on the foreclosed land. The one exception to this general rule is for liens of the North Carolina Department of Revenue. The buyer will not be responsible for payment of any of the liens included in the lawsuit, with the possible exception of North Carolina Department of Revenue liens. We make every effort to include all known liens in each lawsuit we file. Therefore, if there is a Department of Revenue lien on the property, the Department will be included as a party to the lawsuit.

In bank foreclosures, the answer to this question will depend on the lien position of the deed of trust being foreclosed. As a general rule, any lien in place prior to the deed of trust would remain a lien on the property. Any liens (such as a judgments or equity line mortgage) placed on the property after the deed of trust will be extinguished as to the property when it is sold. If you are concerned about the status of liens on any property being sold, you should seek an opinion from your attorney.

If the foreclosure is a property tax foreclosure, then the taxes currently due will be included in the opening bid and will be paid from the proceeds. The buyer may still be responsible for some of the taxes. We will be able to tell you at the sale.

In bank foreclosures, the sale is subject to the property taxes. Buyers will have to pay all past due taxes. Some counties require that this be paid prior to the deed being recorded. The Trustee will be able to tell you at the sale what taxes are and are not included and what will have to be paid to record the deed.

The Trustee will answer any questions relative to the foreclosure process or the pending foreclosure law suit. You will need to contact your personal attorney if you have specific questions about the title to the property or the interest to be conveyed.

The property is sold AS IS. The Trustee will give the high bidder a Special Warranty Deed, Trustee Deed or Commissioners Deed, but does not warrant the title that you will receive through the foreclosure. If you need a title certification for purposes of a loan or to obtain title insurance, you should discuss that with your attorney.