FAQ
Understanding the Basics About Tax Deed Foreclosures
A tax deed is a legal document granting property ownership to a government body when the owner fails to pay any associated property taxes. It gives the government agency the authority to sell the property to collect the delinquent taxes. Once sold, the property transfers to the purchaser. These sales take place at in-person auctions.
A tax deed is a complete transmittal of the title of a property due to property tax payment delinquency. A tax lien is a legal designation that one party has the right to collect proceeds or value from a property. All liens are subsequent rights to receive value from an asset. North Carolina does not sell tax lien certificates.
In North Carolina, when property taxes remain unpaid, the county can seize and sell the property via a tax deed sale to recoup the delinquent back taxes. These tax delinquent properties allow them to recover some or all of the outstanding taxes owed on the property while giving investors access to potentially valuable investment opportunities.
Here is an outline of the North Carolina Tax Foreclosure process:
Notification and Accumulation of Delinquent Taxes
The process begins when a property owner fails to pay the required property taxes by the due date. Local tax authorities issue a series of notifications, informing the owner of the delinquent balance. With each notice, interest and penalties are added, which increases the overall debt owed on the property.
Issuance of a Tax Lien
Once the taxes become sufficiently delinquent, the county tax office places a tax lien on the property. This lien legally secures the unpaid tax amount and serves as a formal claim against the property, setting the stage for the upcoming auction.
The Courthouse Sale
Most county sales auctions in North Carolina are held on the steps of the county courthouse or at another location designated by the Clerk of the Court. During the auction:
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Starting the Bid: The auctioneer begins the sale at a pre-determined price designed to cover back taxes and foreclosure costs.
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Competitive Bidding: Attendees can raise the bid like in a traditional auction. Once the final bid is reached, the auctioneer announces the winner.
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Deposit Requirements: If you win the auction, you must submit a deposit of 20% of your bid or $750.00—whichever is greater—in certified funds or cash.
Upset Bid Period
Winning the courthouse sale does not immediately guarantee your rights to the property. North Carolina law provides for an upset bid period:
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Duration: This period lasts for 10 days following the initial auction.
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How It Works: During these 10 days, any interested party may file an upset bid at least 5% or $750 greater than the previous bid.
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Resetting the Clock: Each time an upset bid is placed, a new 10-day upset bid period begins, allowing further competitive bidding until no new bids are submitted.
Bid Closing Period
After no further bids have been received for 10 days, the bidding process concludes, and the final winning bidder is established.
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Final Payment: The winning bid amount becomes the purchase price, and you are then given two to three weeks to complete the payment.
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Deposit Application: If you were the winning bidder at the initial courthouse sale, your bid deposit is applied toward the total price. Conversely, if you secured the property through an upset bid, the full bid amount is required, and the clerk later refunds your initial deposit in full.
Sale Confirmation
Once your payment is submitted, a Motion for Confirmation of Sale is filed with the court.
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Court Review: This confirmation process typically takes about 1-3 months.
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Finality: Upon confirmation by the court, you legally own the rights to the property.
Commissioner’s Deed
Following the court’s confirmation and recording of the sale:
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Deed Issuance: You will receive the Commissioner’s Deed to the property, usually within a week.
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Recording the Deed: You are responsible for promptly recording the deed with the County Registrar to finalize your ownership.
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Your ROI on your tax deed property depends on the taxes owed and the property assessment you bid on.
Let’s use the following example of a tax deed property assessed at $100,000. The back taxes owed on that property are $5700. When the bidding is completed, the highest bid is $49.000.
This is how the finances break down:
The county will take the full bid amount ($49000).
The bidder who is now the new owner receives both the title to the property and an equity profit of $51,000 ($100,000-$49000).
North Carolina requires the highest bidder on a tax deed foreclosure property to make a deposit (usually 20% of the bid amount or $750, whichever is greater) immediately after the sale. Following the sale, there is a 10-day Upset Bid Period during which other bidders can submit higher bids (known as Upset Bids).
If no upset bids are received, the original bidder is notified and has a set timeframe (often 10 days) to pay the remaining balance, including administrative dues and fees.
If the winning bidder fails to pay the remaining balance within the timeframe, they risk forfeiting their deposit. The county will keep the money from the initial bid and retry the sale.
Hiring an attorney knowledgeable about tax deed foreclosures in North Carolina is highly recommended to protect your interests and speed up the purchase and confirmation process.
All tax deed foreclosure sales must be attended in person in North Carolina. They do not offer online tax deed auctions or telephone bids. Some counties will accept mail-in upset bids, so double-check when you do due diligence on your properties to avoid unexpected issues.
In addition to the excellent ROI you can receive when buying land for sale in North Carolina, tax deed foreclosure sales offer a cost-effective option to enter the NC real estate market. Savvy investors have discovered that gaining access to off-market properties allows them to find hidden gems of land for sale NC.
Tax deed properties for sale add diversity to your investment portfolio, improving its ability to withstand market fluctuations and building overall wealth. Investing in tax deed foreclosure properties allows local communities to recover and improve their infrastructure, which creates a stronger North Carolina for all.
Using The NC Tax Foreclosures.com Platform
NCTaxForeclosures.com is your ultimate resource for tax deed properties for sale in Guilford, Mecklenburg, and surrounding counties. We pull together data from various sources and compile it in an easy-to-use platform that saves you from trying to keep up with daily changes.
NC Tax Foreclosures.com covers the following counties:
Guilford
Mecklenburg
Forsyth
Chowan
Surry
Wilson
Washington
Scotland
Robeson
Richmond
Northampton
Cherokee
Iredell
Jones
Rowan.
NCTaxForeclosures.com aggregates data from these counties and updates the listings daily, ensuring you always have the most complete and accurate information to plan your investments.
Our website platform and app allow you to search by address, county, city, or zip code. You can also drill down by criteria such as property sale status, price range, and most recently added properties.
In addition to the address, sale status, and price range, we provide geolocation, auction date, and assessed value, allowing you to streamline your due diligence process.
Absolutely! NCTaxForeclosures.com can save your property searches and set up customized alerts via SMS or email, so you never miss an opportunity for upcoming tax deed sales.
NCTaxForeclosures has a desktop platform and a free, user-friendly app that you can download to your mobile devices so you can stay informed while on the go.
Tax deed property sales in North Carolina can happen quickly, and information changes daily. NCTaxForeclosures.com saves you the headache of running from county courthouse to county courthouse and allows you to make focused and informed decisions on your desired properties.
Anyone, from first-time buyers to seasoned real estate pros looking to expand their portfolio, can benefit from using NCTaxForeclosures.com. By building our user-friendly platform, we aim to lower the barrier of entry to tax deed property purchasing and allow you access to the untapped potential of tax foreclosure sales.
We currently have two plans available:
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All Counties Access Plan gives you instant access to all the tax deed properties available in North Carolina, updated daily, so you don’t miss an opportunity. After your 24-hour free trial, you receive the limited-time introductory price of $199/month for the next three months. Starting in Month 4, your subscription price increases to $999/month.
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Custom Counties Plan helps you narrow your searches to a customized list of a specific county or group of counties at a reduced price, for a limited time. Your subscription costs start at $99/month, and you will need to schedule a demo and discuss your specific needs to determine pricing.
Both plans offer pay-as-you-go membership, with no hidden fees or long-term contracts.
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NCTaxForeclosures.com works on a pay-as-you-go monthly fee, allowing you flexibility and savings. There are no hidden fees or long-term contracts.
Use the simple email sign-up form to get free, limited access to the platform for 24 hours. After the 24 hours have expired, you will be charged for your first month and get full access to our platform of tax deed foreclosure properties in North Carolina.
NCTaxForeclosures.com accepts payments through credit cards, cash apps, links, and Amazon Pay.
Please email our team at hi@nctaxforeclosures.com to modify your current subscription.
Our staff can help you at hi@nctaxforeclosures.com or by using the form on our Contact Us page.
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