How is my portion of the surplus calculated based on my ownership and inherited interest? – North Carolina Short Answer In North Carolina, foreclosure “surplus funds” are distributed first to any remaining lienholders in order of priority, and then to the property’s owners of record as of the sale date. If you held a one-half…
How do I arrange for my surplus proceeds to earn interest once they’re distributed? – North Carolina Short Answer In North Carolina, surplus foreclosure proceeds are held by the Clerk of Superior Court and may be invested while the funds remain with the clerk. You (or your attorney) can ask the clerk to invest the…
What happens if some heirs fail to file a response within the statutory response period? – North Carolina Short Answer In North Carolina surplus-funds proceedings after a foreclosure, if properly served heirs do not file a written response within the required time, the Clerk of Superior Court may proceed without them. The clerk can set…
How can I request a continuance for my surplus funds hearing? – North Carolina Short Answer File a written Motion to Continue in the special proceeding with the Clerk of Superior Court, explain your good cause (why you need more time), and serve all interested parties. The clerk decides whether to continue the hearing and…
Can unpaid property taxes reduce the amount I receive from surplus funds? – North Carolina Short Answer Yes. In North Carolina, unpaid property taxes are top-priority liens that must be paid out of the sale proceeds before any surplus is released to you. After paying sale costs, taxes, the foreclosing debt, and any junior liens…
What happens if I can’t settle outstanding taxes before the surplus funds hearing? – North Carolina Short Answer In North Carolina, property taxes are paid from the sale proceeds before any surplus is released. If taxes are still outstanding at your surplus funds hearing, the Clerk of Superior Court can either (a) direct payment of…
How far in advance do I need to file a motion to continue a surplus funds hearing? – North Carolina Short Answer In North Carolina, file and serve a written motion to continue at least 5 days before the scheduled surplus funds hearing so all parties receive proper notice. The Clerk of Superior Court can…
Am I entitled to half of the surplus funds if I am the only surviving heir and my sibling predeceased me? – North Carolina Short Answer Usually, yes—if your only sibling died before the property owner and left one child, North Carolina intestacy law gives you one-half and your sibling’s child (your niece or nephew)…
What documents and steps are required to submit a surplus funds claim and distribute the proceeds? – North Carolina Short Answer In North Carolina, surplus from a power-of-sale foreclosure is applied first to costs and the foreclosing debt, then to junior liens in order of priority, and any remainder goes to the former owner. To…
Can I enforce a split of surplus funds with my investor before the court releases the funds? – North Carolina Short Answer Not directly. In North Carolina, surplus proceeds from a foreclosure are disbursed only by order of the Clerk of Superior Court after the sale is final. A private agreement to split surplus funds…