Mecklenburg North Carolina Deficiency Judgment

State:
North Carolina
County:
Mecklenburg
Control #:
NC-E-101
Format:
PDF
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Description

Deficiency Judgment: This is an official form from the North Carolina Administration of the Courts (AOC), which complies with all applicable laws and statutes. USLF amends and updates the forms as is required by North Carolina statutes and law.


Mecklenburg County, located in North Carolina, has legal provisions for a type of judgment known as Mecklenburg North Carolina Deficiency Judgment, which arises in the context of mortgage foreclosure proceedings. A deficiency judgment occurs when the foreclosure sale of a property does not fully cover the outstanding mortgage debt, and the lender pursues a judgment against the borrower for the remaining unpaid balance. In Mecklenburg County, there are two primary types of deficiency judgments that can be pursued: in rem and in personam deficiency judgments. 1. In Rem Deficiency Judgment: This type of deficiency judgment is filed against the property itself rather than the borrower personally. It allows the lender to seek repayment from any excess funds generated from the property's foreclosure sale. If the sale proceeds do not fulfill the remaining mortgage amount, the lender can initiate an in rem deficiency judgment to recover the difference. This means that the borrower is not directly responsible for the outstanding balance; instead, the property acts as collateral. 2. In Personal Deficiency Judgment: In this case, the deficiency judgment is specifically filed against the borrower personally, and it allows the lender to seek repayment beyond the foreclosure sale proceeds. If the foreclosure sale does not generate enough funds to satisfy the remaining mortgage debt, the lender has the right to pursue the borrower for the outstanding balance. This type of judgment holds the borrower liable for the deficiency amount, even if the property is no longer owned. Both in rem and in personam deficiency judgments in Mecklenburg County are subject to certain legal requirements and limitations. The lender must follow the appropriate legal procedures, including providing proper notice to the borrower, filing the necessary court documents, and obtaining a court order to pursue the deficiency judgment. It is important for borrowers facing foreclosure to be aware of their rights and seek legal counsel to understand the implications and potential obligations associated with deficiency judgments. Keywords: Mecklenburg North Carolina, deficiency judgment, mortgage foreclosure, in rem deficiency judgment, in personam deficiency judgment, foreclosure sale, outstanding mortgage debt, legal procedures, borrower's obligations, legal counsel.

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FAQ

If you refuse to pay, the debt will most likely be sold to collections. But either the lender or the collector can choose to file a lawsuit against you, which could result in a wage garnishment, a levy against your bank account or a lien against your other property.

California. You are not liable for the deficiency for purchase-money loans in non-judicial foreclosure. You are not liable for the deficiency in judicial foreclosure for property with four units or less, seller-financed loans, or refinances of purchase-money mortgages executed after January 1, 2013.

Deficiency Judgments Are Generally Allowed In North Carolina, a lender may obtain a deficiency judgment by filing a lawsuit against you after a nonjudicial foreclosure.

Deficiency judgment is money awarded to creditors when assets securing a loan do not cover the debt owed by a debtor. When a debtor becomes insolvent, a creditor can repossess the asset securing the loan, and then sell the asset to recover the debt.

There are currently 12 non-recourse states: Alaska, Arizona, California, Connecticut, Hawaii Idaho, Minnesota, North Carolina, North Dakota, Texas, Utah, and Washington.

Most states allow deficiency judgments. Only Alaska, California, Minnesota, Montana, Oregon and Washington forbid deficiency judgments in most cases. Other states only allow deficiency judgments in certain instances. In Arizona, lenders can't purchase deficiencies for one- or two-family homes on 2.5 acres or less.

According to the CCP, the overall amount of the deficiency judgment will be the lesser of: The mortgage balance plus associated costs (such as interest) minus the fair market value of the property on the day that the property was foreclosed.

A deficiency judgment will remain on your credit report for 7 years. If you apply for a mortgage, car loan, credit card or other loan, lenders will see this negative judgment until it falls off your report. Your credit score will also suffer if a court files a deficiency judgment against you.

If your lender has won a deficiency judgment, it can take certain steps to collect. These may include: Garnishing your wages: Taking a portion of your paycheck until the debt is satisfied. Levying your accounts: Taking cash from your bank account to reduce the debt.

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COUNTY, NORTH CAROLINA: Section 1. The Mecklenburg County Subdivision Regulations as embodied in the Subdivision.In a decision issued on July 7, 2015 (United Community Bank v. The Title and License Manual is provided primarily as a reference guide for titling and licensing vehicles in the State of North. Carolina. United States. Congress. Senate. Learn how foreclosures work in North Carolina. Having a judgment allows the plaintiff to use certain courtsanctioned processes to collect the judgment debt. Mecklenburg County North Carolina provides their.

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Mecklenburg North Carolina Deficiency Judgment