What is the statute of limitations on foreclosure?

In North Carolina, the statute of limitations on foreclosure is five years. This means that the creditor (usually a bank) has five years from the date of default (when the borrower stops making payments) to begin the foreclosure process. The foreclosure process begins when the lender files a complaint with the court. The borrower is then served with a summons and complaint, which begins the foreclosure proceedings. If the borrower does not comply with the foreclosure process over the course of the five year period, the foreclosure action ceases and the lender can no longer initiate legal action against the borrower. It is important to note that the five year statute of limitations is only applicable to foreclosure actions initiated within that time frame, and that it does not begin all over again when the lender attempts to collect on the debt. The lender is still able to collect the debt after the expiration of the five year period, it simply cannot initiate foreclosure proceedings. It is also important to understand that the statute of limitations on foreclosure is not applicable to all loans. Some mortgages, such as those secured by the Federal Housing Administration (FHA) or the Department of Veterans Affairs (VA), do not have a statute of limitations and the lender can pursue foreclosure proceedings at any time. Therefore, it is important to check with a qualified attorney if you are unsure about the specifics of your loan.

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What is the statute of limitations on foreclosure?

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