Dec232025
Real Estate Q&A Series

What does it mean if the lender placed a lien on my home when I’ve been making timely payments? – North Carolina

Short Answer

In North Carolina, most home loans are secured by a recorded deed of trust, which creates a lien on the home from the start of the loan—even when payments are on time. So a lender saying there is a “lien” often does not mean something new happened; it may simply mean the existing deed of trust remains in place until the loan is paid off and released of record. If the lender recorded a new or additional lien or is misapplying payments, that can signal a servicing or title problem that should be investigated quickly.

Understanding the Problem

In North Carolina real estate, the question usually means: can a mortgage lender claim a lien on a marital home even though the surviving spouse has been making timely payments, signed the deed of trust, and is trying to be recognized as a successor in interest after the other borrower died? It also raises a related concern about what happens when the servicer restricts access to account information and the record owner cannot confirm how payments are being credited. The decision point is whether the “lien” is simply the original deed of trust that secures the loan, or whether the lender has taken a new action that affects title or foreclosure risk.

Apply the Law

Under North Carolina law, a deed of trust recorded in the county land records generally acts as the lender’s lien against the home to secure repayment of the underlying debt. That lien typically remains in place until the debt is satisfied and the lien is released or canceled of record. A homeowner can be the record owner of the property while the lender still has a lien; ownership and the lien are different concepts. Separately, foreclosure activity and land-record filings (like a recorded notice tied to a foreclosure) are governed by North Carolina statutes and usually involve filings with the county Register of Deeds and proceedings handled through the Clerk of Superior Court (for power-of-sale foreclosures).

Key Requirements

  • A valid recorded security instrument exists: In most residential loans, the lien comes from a deed of trust that was signed and recorded; it secures the repayment obligation evidenced by a note.
  • The lien stays until the obligation is satisfied: Timely monthly payments do not remove the lien; only payoff (or another valid release) leads to a recorded satisfaction/cancellation.
  • Record filings matter for “new” lien activity: If something new was recorded (for example, a foreclosure-related notice or another encumbrance), it should be visible in the county Register of Deeds records and may change timelines and risk.

What the Statutes Say

Analysis

Apply the Rule to the Facts: The facts describe a surviving spouse who became the record owner through rights of survivorship, signed the deed of trust, and has been making payments, but the servicer says the spouse is not “on the mortgage” and says it “placed a lien.” In many North Carolina loans, the deed of trust lien already exists and stays in place despite timely payments, so the statement may reflect the original recorded deed of trust rather than a new penalty. The concerning part is the combination of (1) restricted account access, (2) uncertainty about whether payments are being credited, and (3) any implication that a new filing was recorded or that foreclosure steps started.

Process & Timing

  1. Who files: If the concern is a land-record filing, the usual first step is not “filing” but checking what is recorded. Where: the county Register of Deeds where the home is located. What: search for the recorded deed of trust and any later-recorded documents (assignments, substitutions of trustee, notices tied to foreclosure, satisfactions). When: as soon as the servicer claims a lien was placed or a status changed.
  2. Confirm servicing and payment application: Gather proof of payments (bank statements, canceled checks, confirmation numbers) and request a transaction history and current payoff/arrearage information from the servicer. If the spouse is being asked to complete a successor in interest package, complete it carefully so the servicer can communicate and provide account access consistent with its policies.
  3. Escalate if a foreclosure step appears: If the Register of Deeds records show a foreclosure-related recording (or if mail is received about a foreclosure hearing), contact a North Carolina real estate attorney immediately to review the file, confirm the status, and respond through the proper channel, which commonly involves the Clerk of Superior Court for power-of-sale foreclosure proceedings.

Exceptions & Pitfalls

  • “Lien” versus “new lien” confusion: A deed of trust lien is normal and expected; the key is whether the lender recorded something new (or claimed default) despite timely payments.
  • Owner versus borrower mismatch: A surviving spouse can own the home but still face obstacles if the spouse is not recognized by the servicer for communication and account access; that can delay resolving errors and confirming payment posting.
  • Misapplied payments: Payment posting problems can happen (for example, wrong loan number, suspense accounts, returned payments). Keeping a clean paper trail of each payment helps identify and correct issues.
  • Ignoring land-record notices: A recorded notice tied to foreclosure is not the same as a judgment lien, but it can signal serious action that requires immediate attention.
  • Assuming the lien should disappear with timely payments: In North Carolina, a lien release typically occurs after payoff and a recorded satisfaction or certificate of satisfaction, not simply because payments are current.

Conclusion

In North Carolina, a lender’s “lien” on a home usually refers to the recorded deed of trust that secures the loan, and that lien generally stays in place even when payments are timely. The key issue is whether the servicer is describing the original deed of trust or has recorded a new document (such as a foreclosure-related notice) or misapplied payments. The most practical next step is to check the county Register of Deeds records and confirm what, if anything, was newly recorded.

Talk to a Real Estate Attorney

If you’re dealing with a lender claiming a lien despite timely payments or blocking access while requesting successor-in-interest paperwork, a real estate attorney can help review the recorded documents, spot servicing red flags, and outline the fastest way to protect title 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.

Category: Real Estate Q&A Series

Author: jpierce

Attorney Jared Pierce is the founder of Pierce Law Group in Raleigh, North Carolina, a firm he established with a dedicated focus on probate administration and estate planning across North Carolina. Born and raised in the Republic of South Africa, Jared moved to Durham with his family in 2001, bringing with him a rich cultural background and a distinctive accent that often serves as a conversation starter.