What is non-judicial foreclosure?

Non-judicial foreclosure is a type of foreclosure process that is used in North Carolina. Essentially, it means that the foreclosure process is handled outside of the court system. This type of foreclosure occurs when a borrower fails to make payments on their mortgage loan, and the lender initiates the process to take back the property. In a non-judicial foreclosure, the borrower must receive a notice that the lender is initiating foreclosure proceedings. This notice must include details about the foreclosure process and the amount still owed. The borrower will then typically have either 30 or 60 days to pay the amount due and catch up on the payments. If this is not done, the foreclosure process will move forward. Next, the lender must file a complaint with the clerk of court to begin proceedings. The clerk of court will then issue a notice of foreclosure sale. This notice must be made publicly and must provide a date and time for the sale of the property. On the day of the sale, the property will be auctioned off and the highest bidder will acquire the deed to the property. Finally, the lender will take whatever proceeds from the sale are necessary to pay off the borrower’s debt. If there is a remaining balance, the lender must obtain a deficiency judgment from the court. This will allow them to collect the remaining balance from the borrower. Non-judicial foreclosure can be an efficient and cost-effective way for lenders to reclaim their collateral and recoup their losses.

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What is non-judicial foreclosure?

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