General Information about the Tax Collection Foreclosure Process
All sales are conducted by Wilcox McFadyen Fields & Sutherland Law Firm, RKS Law Firm, McGeachy, Hudson & Zuravel Law Firm, or the Hoke County Sheriff's Office on the front steps of the Hoke County Courthouse at 304 North Main Street, Raeford North Carolina.
The Tax Department takes tax foreclosures very seriously. Before proceeding with any legal action, notice is given to the taxpayer by phone, letters, notices, etc. The Tax Department only forecloses if there is no response from the taxpayer after action is taken or if the taxpayer does not follow through with an agreed upon payment arrangement made with the Tax Department. A tax foreclosure can begin at any date after January 5th of the current year that is being collected.
Tax foreclosure sales may be processed by one of two procedures:
1. In-Rem Foreclosures: The Tax Department and the Hoke County Sheriff Office will handle all aspects of the foreclosure proceedings. More defined information on this style of foreclosure can be found by reviewing the general statue (G.S.§ 105-375) 2. Mortgage Style: The County will refer the account to an outside attorney who will handle all aspects of the foreclosure proceeds. The tax liens on real property in North Carolina are subject to foreclosure in a manner similar to bank foreclosures. More defined information on this style of foreclosure can be found by reviewing the general statue (G.S.§ 105-374).
Other helpful information regarding Tax Foreclosures
ALL SALES ARE FINAL. BUYER BEWARE. WE OFFER THE PROPERTIES ON A 'WHERE IS' AND 'AS IS' BASIS. THE COUNTY MAKES NO REPRESENTATION OF WARRANTY, EXPRESS OR IMPLIED. IT IS THE BUYER'S RESPONSIBILITY TO INVESTIGATE THE PROPERTY PRIOR TO BIDDING.
Anyone considering buying property at a tax foreclosure sale should be aware that there is a risk. The County does not guarantee or provide any warranty. Pursuant to state law, when bidding at a public sale, bidders become personally liable and responsible for their bids. It is up to the bidder to know exactly what they are bidding on. The County will not overturn a sale and refund the purchase price or deposit because a bidder did not know what they were bidding on.
If a bidder fails to follow through with their winning bid, the bidder will forfeit the deposit and the property will be resold. If the next bid is less than the original winning bid, a default judgment will be entered against the defaulting bidder for the loss. At the discretion of the Sheriff, defaulting bidders may be barred from making subsequent bids at any foreclosure sale conducted by Hoke County.
- Notice of Sale: All sales will be advertised in a newspaper that meets the requirements of general circulation as required, prior to the sale date. Additional information may be posted to the County's website to assist with advertising the sale and opening bid.
- Location on Sale: Foreclosure sales will be handled by a public auction on the front steps of the county courthouse scheduled at the discretion of the assigned commissioner conducting the sale. Sales will be made to the last and highest bidder and each property will be sold "as is" and without warranty. Each sale may be subject to further outstanding taxes and any local improvement assessments against the property not included in the judgment.
- Bidding on an auction property: You can bid on any property by attending the sale on the courthouse steps the day the sale is to take place. The price for each property has an Estimated Opening Bid set prior to the date of the sale. This is the approximate amount required for the opening bid. The person conducting the sale will announce the actual opening bid for each property at the time of sale. A deposit of five percent (5%) or $750.00 whichever is greater and the balance of the price bid must be paid at the end of the ten-day period and confirmation of the sale. Funds must be certified funds made payable to the proper entity that handled the auctioned property. The Attorney or the Sheriff's office may, in its discretion, determine and allow a reasonable time within which to deliver the successful bid amount, but under no circumstances will the time be extended to the day following the sale. Bids are left open for upset bids ten days after sale date. You will be notified that an upset bid has been received. At that time you will have the option to place a higher bid. Any upset bids must be made in person at the Hoke County Clerk of Superior Court.
- Upset Bid process: A person interested in making an increased bid should go to the Office of the Clerk of Superior Court at the Hoke County Courthouse. The increased bid must exceed the current bid by five percent (5%) or $750.00 whichever is greater. To make an increased bid a deposit of five percent (5%) of the amount of the new high bid, or a minimum of $750.00, must be delivered to the Clerk of Superior Court by cash or certified check or cashier's check satisfactory to the Clerk.
- Final Bid Process: After the time for submitting an upset bid has expired, G.S. 1-339.67 provides for an order of confirmation to be entered. No sale may be consummated until confirmed by the Clerk of Superior Court. The final bidder will be contacted and arrangements will be made for full payment, which will be due in the form of a certified funds made payable to the proper entity that handled the auctioned property. Bids accepted at auction and upset during the ten (10) day period musty be paid in full within ten (10) days after the upset bid deadline.
- Deed Preparation: Buyer should contact the entity that conducted the sale.
- How to stop the process: State law provides that any owner, mortgage holder, or defendant in a filed tax foreclosure proceeding can stop the foreclosure process at any time by redeeming the property. The redemption price is equal to the taxes, interest fees, and costs of the foreclosure proceeding to the date of the redemption. If payment is made after the tax sale, but prior to the confirmation of the sale, that is, within ten days of the sale or any resale, the judgment will be satisfied and the proceedings halted.
ALL PROPERTIES ARE SOLD IN "AS IS" CONDITION. INTERESTED PARTIES ARE ENCOURAGED TO RESEARCH ALL PROPERTIES THOROUGHLY PRIOR TO SALE AND BEFORE BIDDING ON A PROPERTY.
Frequently Asked Questions