NC Foreclosure Law - Help?
Does anyone know how the foreclosure process in NC works? Here is my question:
Property has a 1st and 2nd mortgage. 1st foreclosed, went to sale yesterday. There were no bidders. Attorney for 1st mortgage is telling us they are willing to reinstate the loan during the "10 days"...
I'm not sure how the redemption period and lien priority works there... is the 2nd wiped out since the 1st has gone through sale already?
Any ideas would be helpful.
Thanks!
This is not my method of buying, so please feel free to verify the info.
In most cases, the lender makes the first bid on the property, setting the floor for bids. So by default, if there are no bids (from investors) the lender becomes the highest bidder.
There is no 'redemption period' in NC. There is a 10 day period after the sale for upset bids.
The 2nd would be 'wiped out' by the foreclosure. I believe that only taxes and IRS liens will survive the sale.
Not sure about the reinstatement of the loan. Since the original homeowner is out of the loop after the sale, sounds like the lender may be willing to finance for the balance of the original loan, but I'm sure that there will be some fees involved.
Hope it helps,
Roger