How does the lender recover legal fees and costs in a foreclosure?

In North Carolina, the lender can recover their legal fees and costs associated with a foreclosure in two ways. The first is by selling the property at a foreclosure sale and using the proceeds to cover the costs of the foreclosure. The proceeds generated by the sale are first used to pay off any outstanding debts that the borrower still owes to the lender, including mortgage payments, legal fees, taxes, and costs associated with the foreclosure. Any remaining proceeds are paid to the lender to cover their legal fees and other costs that they incurred during the foreclosure process. The second way the lender can recover legal fees and costs is by seeking a deficiency judgment from the borrower. This requires the borrower to pay the difference between the amount owed to the lender and the sale price of the property. In North Carolina, the borrower can be held responsible for the lender’s legal fees, court costs, and the expenses associated with a trustee’s sale. If the borrower declines to pay the deficiency judgment, the lender has the right to seek a wage garnishment or a lien on any property owned by the borrower.

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How does the lender recover legal fees and costs in a foreclosure?

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