Can I sell my house during foreclosure in North Carolina?
Yes. A foreclosure filing does not take away your right to sell. In North Carolina you can sell right up until the upset bid period after the auction ends — as long as the sale actually closes in time.
The short answer, by stage
Before anything is filed
The easiest time. No deadlines yet, and the house can be listed normally. Pre-foreclosure help.
After the notice of hearing
Still fully possible. The hearing is not the sale, and a sale typically needs 30 to 45 days to close.
After the sale is scheduled
Possible, but the closing date has to land before the auction or you need the servicer to postpone it in writing.
After the auction
Only during the ten-day upset bid period, and only if the sale pays off everything owed plus costs before it ends.
N.C.G.S. 45-21.20
After the upset period
Too late. The buyer at auction gets the deed.
What the sale has to cover
The full payoff
Principal, interest, late fees, the trustee’s fees and foreclosure costs. Order a written payoff statement early and again near closing.
Other liens
Second mortgages, HELOCs, judgments and HOA dues all have to be paid or released for title to transfer.
Closing costs
Commission, excise tax and closing fees. If the price does not cover everything, it becomes a short sale and needs lender approval.
Cash buyer or listing?
A listing on the open market usually brings the highest price but needs time for showings, a buyer’s financing and appraisal. A cash sale closes faster with more certainty, usually for less. The right answer depends on how much time you have left and how much equity is at stake. How selling before foreclosure works in Charlotte.
Be careful with anyone who wants you to sign the deed over before closing, or who offers to let you rent the house back. That is how homeowners lose their equity.
Frequently asked questions
Does selling stop the foreclosure?
Yes, when it closes and the loan is paid off. A signed contract alone does not stop anything, so keep the servicer updated and ask for a postponement in writing if the closing is close to the sale date.
Do I need the lender’s permission to sell?
Not if the sale pays the loan off in full. You only need approval for a short sale, where the price is less than what is owed.
Will I get money from the sale?
If the price is more than the payoff, liens and closing costs, the difference is yours at closing. That is the main reason to sell before the auction instead of after.
General information for North Carolina homeowners. It is not legal, tax or financial advice. Terri Lombardo is a licensed real estate broker, not an attorney or tax adviser.
Free HUD-approved housing counseling is available to North Carolina homeowners through the NC Housing Finance Agency on 1-888-442-8188.
Want to know if a sale will close in time?
Tell us your sale date, if there is one, and roughly what you owe. We will tell you whether a sale fits and which kind.
Serving Charlotte and the surrounding counties.