The Process

• North Carolina foreclosure law includes the ability to use the power of sale clause in the case of failure to make monthly payments on a mortgage. On the mortgage agreement there is a phrase that says the house can be sold by the mortgage lender if the payments fall short by a few months.
  
  

Timeline

• As soon as the bank can properly document that payments have not been made for two months, the house could be sold. North Carolina does not have a long legal process like other nearby states do.
  
  

Repurchase Rights

• The owner has the right to repurchase his home during the sale. This is called the right of redemption. Usually the sale price will be high, since the bank wants to compensate for the money it lost during the initial loan.
  
  

Location

• The home will be sold at the local court in an auction process. Many real estate investors attend these auctions in North Carolina, and prices are often higher than the owner's original purchase price. The owner in foreclosure has the right to take part in the auction.
  
  

Notification

• North Carolina does give one advantage to those in foreclosure: the owner has to be properly notified at least 20 days in advance prior to the sale.
  
  

Publicity

• Community centercommunity gazebo image by Shannon Workman from Fotolia.com
  
  The sale must be made public in a local newspaper. It also must be posted at the court house.