Surplus Funds Q&A Series

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 may require a proposed new date. File as soon as possible before the scheduled hearing. If unpaid property taxes are pressing, you can also ask for a limited, interim order to address taxes while continuing the rest.

Understanding the Problem

In North Carolina, can you ask the Clerk of Superior Court to postpone a special proceeding hearing about releasing surplus funds from a foreclosure or tax sale when you feel unprepared? Here, you are the petitioner facing questions about how to distribute the surplus and how to handle unpaid property taxes.

Apply the Law

Surplus funds after a foreclosure are handled in a special proceeding before the Clerk of Superior Court in the county where the sale occurred. North Carolina’s civil procedure rules apply to special proceedings unless a statute says otherwise. A party seeking to delay a hearing asks for a continuance by written motion showing good cause and giving notice to all other interested parties. The clerk has discretion to grant or deny the request. If surplus funds were deposited with the clerk after a foreclosure sale, tax liens must be satisfied before distribution to others; when time is needed to prepare, a party can request a short continuance and, if appropriate, a limited disbursement order to cover outstanding property taxes.

Key Requirements

  • Good cause: Explain specific, practical reasons you need more time (e.g., to gather payoff or lien information, get tax figures, or consult counsel).
  • Written motion: File a Motion to Continue in the special proceeding file and propose a reasonable new date or timeframe.
  • Serve all parties: Provide notice of your motion to every interested party already in the case using the prescribed service rules.
  • Clerk’s discretion: The Clerk of Superior Court decides whether to grant the continuance and may set conditions.
  • Address urgent liens: If unpaid property taxes are accruing, request a limited interim order to pay taxes from funds on deposit while continuing the rest.
  • Show up unless continued: Unless you receive an order continuing the case, you must appear at the scheduled hearing.

What the Statutes Say

Analysis

Apply the Rule to the Facts: You have a scheduled surplus funds hearing but need more time to address how the money should be distributed and to verify unpaid property taxes. File a detailed Motion to Continue that explains the specific information you still need (for example, tax payoff figures or lien documentation) and propose a short, concrete new date. Because taxes have priority, consider asking the clerk for a limited interim disbursement to pay taxes now, while continuing the rest of the distribution issues.

Process & Timing

  1. Who files: Any party (e.g., the petitioner/claimant). Where: Clerk of Superior Court, Special Proceedings division in the North Carolina county where the sale occurred. What: A written Motion to Continue (no specific AOC form required) with a brief affidavit or declaration explaining good cause and proposing a new date. When: File as soon as you identify the need; do it before the hearing and promptly serve all parties.
  2. Serve the motion on all interested parties and, if possible, seek their consent. The clerk may rule on the papers or at the start of the hearing. Some counties announce continuances at calendar call; practices can vary.
  3. If granted, the clerk enters an order continuing the hearing and may reset deadlines or permit a limited disbursement to cover taxes. If denied, be prepared to proceed and present what you have.

Exceptions & Pitfalls

  • Waiting until the day of the hearing without notifying other parties often results in denial; file early and show concrete reasons.
  • Failing to serve all interested parties can delay or derail the request; follow service rules.
  • Vague or strategic delay arguments are weak; tie your request to specific documents, payoffs, or records you need to obtain.
  • If the sale was a tax foreclosure, expect taxes to be addressed first; a clerk may grant only a short continuance or allow a partial disbursement for taxes.

Conclusion

To request a continuance of a North Carolina surplus funds hearing, file a written Motion to Continue in the special proceeding with the Clerk of Superior Court, show good cause, and serve all interested parties. The clerk has discretion to grant a new date and may allow a limited disbursement to pay taxes first. Next step: file and serve your motion before the hearing and propose a specific new date that addresses the preparation you need.

Talk to a Surplus Funds Attorney

If you’re facing a surplus funds hearing and need more time to resolve distribution questions or taxes, 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.