Short Answer

Yes. In North Carolina, you can challenge unauthorized mortgage debits, revoke any auto‑draft permission, and seek a refund. You can also demand a full loan accounting and raise wrongful debits as a defense or objection in a foreclosure before the Clerk of Superior Court. If a sale is looming, you may ask a Superior Court judge to halt it while payment disputes are resolved.

Understanding the Problem

You’re asking whether, in North Carolina, a homeowner can stop and reverse mortgage payments the lender pulled from a personal bank account without clear permission while a foreclosure is pending. Here, the client owns the home after an inheritance and later gift of the deed. The lender stopped responding to the client, worked only with the executor, and drafted the client’s account without clear authorization while sending foreclosure notices.

Apply the Law

North Carolina law allows you to dispute unauthorized debits and to challenge the lender’s accounting in any nonjudicial foreclosure. A foreclosure by power of sale happens before the Clerk of Superior Court, where the lender must prove a valid debt, a default, the right to foreclose, and proper notice. The Clerk can consider evidence about the amount due, including improper or unauthorized payments. Separately, when real property passes to heirs or devisees, title typically vests in them, and the property remains subject to any deed of trust; an executor does not control the property unless the Clerk authorizes it. An executor’s involvement alone does not authorize debits from your personal bank account.

Key Requirements

• Authorization: The lender needs your clear consent to auto‑draft your personal account; you may revoke consent in writing at any time.
• Notice and Dispute: Promptly notify your bank and the servicer in writing of any unauthorized debit and request a refund and full payment history.
• Foreclosure Forum: Objections to the amount due or accounting go to a hearing before the Clerk of Superior Court in the county where the property lies.
• Estate Context: Once title passes to you, you generally bear property costs and take the property subject to the mortgage; the executor lacks control absent a court order.
• Injunction Option: If a sale is scheduled or has occurred, you may seek to enjoin or set aside the sale in Superior Court based on mistake, fraud, or irregularity.

What the Statutes Say

• North Carolina Gen. Stat. § 45-21.16 (Foreclosure hearing before Clerk) – Lender must prove the debt, default, right to foreclose, and notice; borrower may object.
• North Carolina Gen. Stat. § 45-21.34 (Injunction to enjoin sale) – Superior Court may enjoin or set aside a foreclosure sale for legal defects or unfairness.
• North Carolina Gen. Stat. § 45-21.27 (Upset bids) – A short window exists after a sale report to file an upset bid and delay deed delivery.
• North Carolina Gen. Stat. § 28A-15-3 (Nonexoneration of encumbered property) – Heirs/devisees take property subject to mortgages; the lien remains.

Analysis

Apply the Rule to the Facts: You own the home by deed, so you generally control who can authorize debits from your account. The executor’s involvement does not, by itself, authorize drafts from your personal bank account. Because the lender withdrew funds without clear authorization, you can revoke any auto‑draft permission and demand a refund and accounting. Since foreclosure notices are issuing, you can object at the Clerk’s hearing to the amount claimed due and ask the Clerk to continue the matter while the servicer corrects its accounting.

Process & Timing

1. Who files: You. Where: Your bank (dispute department) and the mortgage servicer (in writing). What: Written dispute of unauthorized debit; revoke any ACH; request a complete payment history and escrow accounting. When: Do this immediately; many banks require written notice within about 60 days of the statement showing the debit to preserve refund rights.
2. Who appears/files: You. Where: Clerk of Superior Court in the county where the property is located. What: Attend the § 45-21.16 foreclosure hearing; object to the amount due; bring bank statements, revocation letter, and any servicer responses; request a continuance to resolve accounting errors. When: On the hearing date listed in the foreclosure notice (typically after advance written notice).
3. Who files: You (through counsel). Where: Superior Court. What: If a sale is set or has occurred, file a civil action seeking an injunction or to set aside the sale under § 45-21.34; consider filing an upset bid within the statutory period to pause deed delivery. When: File for injunctive relief before the deed is delivered; upset bids are due within the short statutory window after the report of sale.

Exceptions & Pitfalls

• If you signed an ACH authorization (or a third‑party “loan solution” agreement) that allows drafts, revocation must be in writing and sent to both the bank and servicer.
• If another obligated borrower authorized the debit, the bank may treat it as authorized; request the written authorization the servicer is relying on.
• If the executor obtained a court order to take possession/control of real property, the executor may handle property matters, but that does not authorize drafts from your personal account.
• Do not skip the Clerk’s foreclosure hearing; failing to appear can result in an order allowing sale. Bring documents and ask for time to correct the accounting.
• Watch the post‑sale upset bid window and deed‑delivery timing; rights to unwind a sale narrow quickly once the deed is delivered.

Talk to a Real Estate Attorney

If you’re dealing with unauthorized mortgage debits and a pending foreclosure, our firm has experienced attorneys who can help you understand your options and timelines. Call us today at [919-341-7055].

Disclaimer: This article provides general information about North Carolina law based on the single question stated above. It is not legal advice for your specific situation and does not create an attorney-client relationship. Laws, procedures, and local practice can change and may vary by county. If you have a deadline, act promptly and speak with a licensed North Carolina attorney.