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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] NC Foreclosure Statutes Posted by SeanW on April 23, 2003 at 7:02 PM I've seen posts before about how some states like New Jersey, Louisiana, Michigan have oddities in their codes. I've been spending the last few days wading through the NC code, and it definately has its quirks. Back in the days of "Courts of Equity", it was recognized that if someone offered noticably more for a property after a judicial foreclosure, it wasn't equitable to let the sale stand. Because non-judicial foreclosures didn't have this, the N.C. legislature deliberately added a provision for "upset bids" after the sale. Now the Courts of Equity are gone, but not this concept. If someone offers 5% more than the winning bid, within 10 days (of the filing of a report by the trustee for the winning bid), this new "upset bid" is the winner. Someone else could then make another "upset bid" within the next 10 days. This has the indirect effect of creating a right-of-redemption for the owner during the upset bid period. It's not very likely he could pay off the mortgage, of course. But in the event that he can, the sale will be undone. And I also read in one of the case notes, that the clerk of the court cannot undo a sale, if the property is destroyed during this upset-bid period. Another interesting thing, was a provision that the trustee can delay the sale up to 90 days if there are no bidders. Well, that happens pretty often! I have to wonder... if the owner showed up at the sale, and complained that there was no bidding to protect his equity, if the trustee would postpone? Sounds a lot simpler and cheaper than an emergency bankruptcy petition! I haven't found anything yet like California's "unconscionable advantage" rule. But, I'm still reading. Follow Ups: Re: NC Foreclosure Statutes SeanW 6:25 PM, 04/24/03 (0) Post a Followup: Name : E-Mail : Subject : Comments: : I've seen posts before about how some states like New Jersey, Louisiana, Michigan have oddities in their codes. I've been spending the last few days wading through the NC code, and it definately has its quirks. : Back in the days of "Courts of Equity", it was recognized that if someone offered noticably more for a property after a judicial foreclosure, it wasn't equitable to let the sale stand. Because non-judicial foreclosures didn't have this, the N.C. legislature deliberately added a provision for "upset bids" after the sale. Now the Courts of Equity are gone, but not this concept. : If someone offers 5% more than the winning bid, within 10 days (of the filing of a report by the trustee for the winning bid), this new "upset bid" is the winner. Someone else could then make another "upset bid" within the next 10 days. : This has the indirect effect of creating a right-of-redemption for the owner during the upset bid period. It's not very likely he could pay off the mortgage, of course. But in the event that he can, the sale will be undone. : And I also read in one of the case notes, that the clerk of the court cannot undo a sale, if the property is destroyed during this upset-bid period. : Another interesting thing, was a provision that the trustee can delay the sale up to 90 days if there are no bidders. Well, that happens pretty often! I have to wonder... if the owner showed up at the sale, and complained that there was no bidding to protect his equity, if the trustee would postpone? Sounds a lot simpler and cheaper than an emergency bankruptcy petition! : I haven't found anything yet like California's "unconscionable advantage" rule. But, I'm still reading. Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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