Tax Foreclosure Properties
Properties with delinquent real estate taxes are subject to tax foreclosure. When a tax foreclosure action is adjudicated, the ownership of the property is transferred from the delinquent taxpayer to a new owner. The new owner is responsible for all future taxes.
View a map of upcoming foreclosure sales for an accurate look at where current properties are located.
When a foreclosure proceeding is initiated, a motion for a judgment of sale is filed by the attorney. The foreclosure process utilizes the mortgage style foreclosure process (NCGS §105-374) which is conducted by a law firm. To bid on these properties, contact the law firm that is assigned the specific properties for which you are interested.
Successful bids at auction are open for a 10-day period to allow for the submission of upset bids. Upset bids are calculated and received by the Special Proceedings Division of the Clerk of Court for each property. In order to file an upset bid, the upset bidder must raise the bid by 5% of the last bid or $750.00 (whichever is greater) and must provide a deposit in the form of cash/certified funds to the Clerk of Court of 5% of the new bid or $750.00 (whichever is greater). Every time an upset bid is filed, a new 10-day period begins. After all upset bid periods are completed, the highest successful bidder is notified and will need to deliver the balance of the purchase price to complete the sale.
Bankruptcy proceedings filed by the property owner under federal law can also halt tax foreclosure actions. All the taxes, interest, fees, and costs to the date of the bankruptcy filing must be paid as a priority or secured claim in the bankruptcy proceeding.
- What happens once an attorney is assigned?
The attorney starts a title search to determine all property owners, mortgage holders, judgment and lien holders, and other parties having an interest in the property. The attorney notifies the owners of the intent to foreclose and provides a timeline to resolve the tax delinquency. If no resolution is reached, a complaint is filed with the Mecklenburg County Courts. The summons and complaint will be delivered to each defendant, and each party has 30 days to respond from the date the papers were served.
- What is the legal effect of a tax foreclosure filing?
All parties that have a legal interest in the property will be notified that their interest will be terminated if a tax foreclosure sale of the property is completed. There is no real defense to a property tax foreclosure complaint and lawsuit unless the tax is an illegal tax or imposed by clerical error for an illegal purpose.
- When and where are tax sales conducted?
Sales are scheduled on a case-by-case basis. Notices of sale are published in the Mecklenburg Times newspaper once a week for two weeks and posted at the Mecklenburg County Courthouse for at least 20 days.
- What happens if the successful bidder does not bring in the purchase price
Any successful bidder who does not deliver the purchase price upon demand by the closing attorney will be subject to the immediate loss of all deposits, possible civil action, and contempt prosecution for failure to honor the bid.