- Who sends it
- The clerk of superior court enters it in your foreclosure special proceeding
- What it starts
- 10 days to appeal to a district or superior court judge, and the trustee's right to notice a sale
- Do this first
- Note the date the order was entered and call Legal Aid of North Carolina the same day
What this order is in North Carolina
Under N.C.G.S. 45-21.16(d), if the clerk finds the required facts, the clerk authorizes the trustee to proceed under the deed of trust and to give notice of and hold a sale. The NC courts call it an order allowing the sale or authorizing the foreclosure to proceed. The exact title on your copy can vary.
It is not a money judgment against you and it does not transfer your home. It allows the trustee to schedule a sale. The NC courts say a sale date is often, but not always, set at the end of the hearing.
Your 10 days to appeal
- Under N.C.G.S. 45-21.16(d1), either side can appeal the clerk's decision to a district or superior court judge within 10 days after it.
- The NC courts say an appeal requires a written notice of appeal, and there is no standard form.
- The judge hears the case again from the start, but only on the same issues the clerk could decide.
- If no court session is scheduled within 30 days of the clerk's hearing, either side can ask a resident or assigned judge to hear the appeal, under N.C.G.S. 45-21.16(e).
The bond: what stops the sale during an appeal
An appeal alone does not stop the sale. The clerk stays the foreclosure only after the appealing party posts a bond. If you own the home and live there as your principal residence, the clerk must set the bond at 1 percent of the principal balance due, but can set a lower amount for undue hardship or other good cause, or a higher one if there is a risk of damage to the home. The NC courts warn that if the bond is not paid, the trustee can go ahead with the sale before the judge decides the appeal.
What you can still do
- Keep working with your servicer. The NC courts say you may be able to negotiate a loan modification or other resolution until the sale is final.
- Pay the full debt plus the sale expenses and trustee's fee before the sale, or before the last upset bid period ends, under N.C.G.S. 45-21.20.
- For equitable grounds, such as fraud or an unfair sale, a lawyer can ask a superior court judge to stop the sale under N.C.G.S. 45-21.34. The judge will require a bond.
- Watch for the notice of sale, which must be mailed at least 20 days before the sale.
What to do this week
- Count 10 days from the order. Call Legal Aid of North Carolina at 1-866-219-5262 right away if you want to appeal.
- If you do not qualify for legal aid, the North Carolina Bar Association Lawyer Referral Service at 919-677-8574 can refer you to a lawyer.
- Call your servicer and the State Home Foreclosure Prevention Project at 1-888-442-8188 about any pending application.
- Read what to do when a North Carolina sale date is set and our national foreclosure judgment page.
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 do I have to appeal a North Carolina clerk's foreclosure order?
Within 10 days after the clerk's order, under N.C.G.S. 45-21.16(d1). The appeal goes to a district or superior court judge, who hears the case again.
How much is the appeal bond in a North Carolina foreclosure?
If you own and live in the home as your principal residence, the clerk must require 1 percent of the principal balance due, but can lower it for undue hardship or other good cause, or raise it if the home may be damaged.
Does a North Carolina clerk's order mean I owe a deficiency?
No. The order only allows a sale. Whether you could owe a shortfall afterward depends on the loan and the sale. See North Carolina deficiency judgments.
Other North Carolina letters
- 45-day pre-foreclosure noticeFor a home loan on your primary residence, North Carolina requires your servicer to mail this notice at least 45 days before it files a foreclosure notice of hearing. It lists what you owe to catch up and tells you where to get free help. It is a warning, not a court case.
- 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.
- 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.