Macon County Foreclosures

83 Hillside Street Franklin NC

FAQs

How long do I have until my delinquent taxes become subject to foreclosure?
In North Carolina, real property taxes become due on September 1 of each year, and become delinquent if not paid before January 6 of the following year. Any taxes which become delinquent are subject to potential tax foreclosure. Properties are generally assigned to attorneys to foreclose based upon the years of delinquency and amount owed.

What happens when the County or Town assigns property to attorneys to foreclose?
Once the County or Town assign properties to attorneys to foreclose, the Tax Collector’s Office marks its computer records with the assignment. Attorneys will mail a demand letter to the address listed on the tax card stating that the taxes must be paid by a certain date, or attorneys will begin to foreclose. After the time period in the demand letter has expired, if no payments have been made, attorneys will then start a title search of the property to identify all of the owners, lienholders, and other interested parties holding an interest in the property. Attorneys will then prepare and file the tax foreclosure complaint naming all persons or entities holding an interest in the property as defendants.

What happens after the filing of the tax foreclosure complaint?
Each defendant will be served with a copy of the summons and complaint by certified mail, return receipt requested, or by the Sheriff. Upon receiving a copy of the summons and complaint, each defendant will have 30 days to file an answer with the Clerk of Superior Court. Once all defendants have been served, and the time to respond has expired, attorneys will move the court for a judgment ordering the sale of the property. The property will then be noticed for sale at the courthouse.

What is the legal effect of a tax foreclosure filing?
The main purpose of the foreclosure process is to notify all interested parties that any legal interest they may have in the property will be terminated and extinguished if a tax foreclosure sale of the property is completed. The County or Town cannot get a deficiency judgment against you in the event the property sells for less than the amount owed.

How can I find out about upcoming tax foreclosure sales?
Notices of Sale are published in the Sylva Herald (for Jackson County) or the Franklin Press (for Macon County) for two consecutive weeks, with the last date of publication being no more than 10 days prior to the date of the sale. Notices of Sale are also posted at the courthouse at least 20 days prior to the sale in the area designated by the Clerk of Superior Court for posting notices.

How does the tax foreclosure sale process work?
The sale is conducted by a Commissioner appointed by the Court, usually the attorney who filed the foreclosure. At the sale, the highest successful bidder will be required to deposit a bond in the amount of 5% of the bid with the Clerk of Superior Court (payable in cash or certified funds). The sale will then be held open for a period of 10 days for possible upset bids. The minimum amount of each successive upset bid is $750 or 5% of the previous bid, whichever amount is greater. Each upset bidder will be required to deposit a bond in the amount of 5% of the bid with the Clerk of Superior Court. There are no limits to the amount or frequency of upset bids. The sale will conclude when 10 days has passed without an upset bid. Upon conclusion of the sale, the Commissioner will notify the high bidder that the bidder has won and that the bidder has to pay the balance of the purchase price. The Clerk of Court will sign an Order of Confirmation and the Commissioner’s Deed will be recorded and delivered to the new owner. Any unsuccessful bidders will be entitled to the return of any bond monies on deposit with the Clerk.

How can I stop a tax foreclosure sale of my property?
State law provides that any owner, mortgage holder or defendant can stop the foreclosure process at any time by redeeming the property. The redemption price is equal to the taxes, interest, fees, and costs of the foreclosure proceeding to the date of the redemption. Parties wishing to redeem property from tax foreclosure and stop the foreclosure process must contact the assigned attorney for a payoff amount. Redemption can even occur after a sale, so long as the sale has not been confirmed by the Court. However, once the foreclosure sale has been completed with a confirmation order and delivery of deed, all rights of redemption are terminated.

Bankruptcy proceedings filed by the property owner under federal law can also stop tax or assessment foreclosures, but all of the taxes, interest, fees, and costs of the action to the date of the bankruptcy filing must be paid as a priority claim in the bankruptcy proceeding.

What happens if no one bids on the property at the foreclosure sale?
The County or Town will tender an opening bid at each tax foreclosure sale. The opening bid is generally equal to the amount of the delinquent taxes owed, including interest and fees, plus the costs and attorney’s fees to date. If no one bids, the sale may be postponed to another date to see if other bidders might come forward. If no one outbids the County or Town, the sale will be confirmed and a deed will be issued to the County or Town.