Who is eligible to receive surplus funds from a foreclosed property? – North Carolina Short Answer In North Carolina, surplus funds from a completed foreclosure first go to pay junior lienholders in order of priority. Any remaining balance goes to the record owner of the property at the time the sale is finalized (after the…
Can I recover foreclosure surplus funds if the company promised to pay off the mortgage but failed? – North Carolina Short Answer Yes—North Carolina law lets the Clerk of Superior Court release foreclosure surplus funds to the person legally entitled to them. If you signed a recorded deed or assignment giving those funds to a…
Can a business entity that never placed a bid still claim surplus funds from a foreclosure? – North Carolina Short Answer Yes. In North Carolina, surplus funds go to people or entities who held a legal interest in the property at the time of the foreclosure sale, in priority order. Not placing a bid does…
Can I stop the buyer who purchased my parent’s home at a distressed sale from claiming the excess sale funds? – North Carolina Short Answer Often, yes. In North Carolina, surplus funds from a foreclosure or other judicial sale are distributed by the Clerk of Superior Court first to liens in order of priority; any…
When does the waiting period start for filing a surplus funds claim —the date of foreclosure sale or date of death? – North Carolina Short Answer In North Carolina, you can seek foreclosure surplus funds once the sale is final—after the 10-day upset-bid period expires and the trustee files the final report. The date of…
How do I respond to a special proceeding summons to subrogate surplus funds after my parent’s foreclosure sale? – North Carolina Short Answer In North Carolina, respond in writing within 10 days of service and appear at the hearing before the Clerk of Superior Court. Surplus foreclosure funds are deposited with the clerk and paid…
What documentation do I need to prove entitlement to surplus funds? – North Carolina Short Answer In North Carolina, you must show (1) you have standing to claim the surplus (as the personal representative of the owner’s estate or as the lawful heir/devisee), (2) the owner’s connection to the foreclosed property at the time of…
What deadlines apply for filing a surplus funds claim in a special proceeding? – North Carolina Short Answer In North Carolina, there is no fixed statute of limitations in Chapter 45 for claiming foreclosure surplus funds, but timing matters. After the upset bid period closes and the sale is final, claimants file in a special…
Do I have to attend the court hearing on the surplus funds to get my distribution? – North Carolina Short Answer In North Carolina, if the Clerk of Superior Court has scheduled a hearing on surplus foreclosure funds, you or your attorney should plan to attend. The clerk can decide uncontested matters on the paperwork,…
What steps do I need to correct errors in the property deed before funds are released? – North Carolina Short Answer In North Carolina, you must fix the title record before the Clerk of Superior Court will release foreclosure surplus funds. If the error is minor (for example, a misspelling), record a correction affidavit or…