- Who sends it
- Your mortgage servicer, by mail to your last known address
- What it starts
- At least 45 days before the trustee can file a notice of hearing with the clerk of superior court
- Do this first
- Call the State Home Foreclosure Prevention Project at 1-888-442-8188 to reach a free HUD-approved counselor
What this notice is in North Carolina
N.C.G.S. 45-102 says that at least 45 days before a notice of hearing is filed in a foreclosure on a primary residence, the servicer of a home loan must mail the borrower a written notice about resources to avoid foreclosure.
The notice must include an itemized list of the past due amounts causing the default, an itemized list of any other charges needed to bring the loan current, a statement that you may have options other than foreclosure, contact information for the lender or servicer who can work with you, one or more HUD-approved counseling agencies in North Carolina, and contact information for the State Home Foreclosure Prevention Project of the NC Housing Finance Agency.
How to count the 45 days
- The 45 days run from the mailing of the notice to the filing of the notice of hearing with the clerk of superior court. Write down the date on the letter and the postmark.
- Within 3 business days of mailing it, the servicer must file information about the notice with the Administrative Office of the Courts, under N.C.G.S. 45-103. That filing goes into a database the NC Housing Finance Agency reviews.
- If the agency believes more work through the State Home Foreclosure Prevention Project has a reasonable chance of avoiding foreclosure, its Executive Director can push back the earliest filing date one time by up to 30 days and must notify you and the servicer, under N.C.G.S. 45-105.
- Federal rules also apply. Your servicer generally cannot make the first foreclosure filing until you are more than 120 days behind, and the 45 days can run during that time.
What it does and does not mean
- It is not a lawsuit, a hearing notice or a sale date. Nothing has been filed with the court yet.
- It does not mean you must leave your home.
- It matters later. When the trustee files the notice of hearing, the filing must certify that this notice was sent and the waiting periods have passed. Before allowing a sale on a home loan, the clerk must find that this notice was given in all material respects.
- Under N.C.G.S. 45-107, a materially inaccurate certification is cause to dismiss the case without prejudice, which means the lender can file again, and the filer pays your costs of defending it.
What to do this week
- Keep the letter and envelope. Check the itemized amounts against your records.
- Call the State Home Foreclosure Prevention Project at 1-888-442-8188. It connects you with a free HUD-approved counselor who can work with your servicer.
- Ask your servicer for a loss mitigation application and send it back complete, with copies kept.
- If the amounts look wrong, you can send your servicer a written request for an account statement and payment history under N.C.G.S. 45-93.
- Read how a North Carolina foreclosure works and how to stop a foreclosure in North Carolina.
Scams that follow this notice
In North Carolina, taking a fee in advance for foreclosure assistance before all promised services are done is illegal debt adjusting, unless the person is a North Carolina licensed attorney not working for a debt adjuster. Never sign your deed over to someone who promises you can stay. Report scams to the NC Department of Justice at 1-877-5-NO-SCAM. See is this letter a scam and North Carolina foreclosure help.
The rest of the North Carolina process
See how foreclosure works in North Carolina, the timeline, ways to stop it and free help in North Carolina, or read the national guide to this letter.
Common questions
How long after the North Carolina 45-day notice can the foreclosure be filed?
At least 45 days after the servicer mails it, under N.C.G.S. 45-102, and not before the federal 120-day point in most cases. The NC Housing Finance Agency can extend the earliest filing date once by up to 30 days under N.C.G.S. 45-105.
Does every North Carolina homeowner get the 45-day notice?
It is required for home loans on a primary residence. If the home is a rental or second home, the servicer may not have to send it, so do not wait for one before getting help.
What if I never got a 45-day notice in North Carolina?
For a home loan, the clerk must find that the notice was given in all material respects before allowing a sale (N.C.G.S. 45-21.16(d)). Raise it at the clerk's hearing and talk to Legal Aid of North Carolina at 1-866-219-5262.
Other North Carolina letters
- Notice of hearing (power of sale foreclosure)In North Carolina, a power of sale foreclosure starts when the trustee files a notice of hearing with the clerk of superior court. It must be served on you at least 10 days before the hearing, or posted on the home at least 20 days before. At the hearing, the clerk decides whether the trustee may sell.
- Clerk's order allowing the foreclosure saleAfter the hearing, the clerk of superior court can sign an order authorizing the trustee to sell your home. You have 10 days to appeal it to a judge. An appeal stops the sale only if you post a bond, usually 1 percent of the principal balance for an owner who lives in the home.
- Notice of sale (trustee's foreclosure sale)The notice of sale tells you the date, hour and place the trustee will auction your home. It must be posted at the courthouse and mailed to you at least 20 days before the sale, and published in a newspaper for 2 weeks. The sale is held between 10 a.m. and 4 p.m. and is not final on sale day.
- Notice of Upset BidAfter a North Carolina foreclosure auction, anyone can raise the bid within 10 days. Each higher bid is filed with the clerk on a Notice of Upset Bid, and the trustee must mail you notice. Each one starts a new 10-day period, and until the last period ends you can still end the foreclosure by paying the full debt and expenses.
- Order for possessionIf you are still in the home after the sale is final and paid for, the buyer can ask the clerk of superior court for an order for possession after giving you 10 days' notice. The sheriff then has no more than 5 days to carry it out and must tell you the approximate time first.
Sources
- N.C.G.S. 45-102, Pre-foreclosure notice for home loans
- N.C.G.S. 45-103, Pre-foreclosure information filed with the Administrative Office of the Courts
- N.C.G.S. 45-105, Extension of foreclosure process
- N.C.G.S. 45-107, Foreclosure filing
- North Carolina Judicial Branch: Foreclosures help topic
- NC Housing Finance Agency: Avoid Foreclosure (State Home Foreclosure Prevention Project)