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Questions Regarding the Auction Process

What are bid deposits?

On the day of auction, the Commissioner customarily accepts a bid deposit in the amount of 5% of the high bid by way of personal check, cash, cashier’s check or money order.
 

In rare instances, the Commissioner reserves the right to insist on bid of up to twenty-percent (20%) and or accept only certified funds such as cash, money order or cashier’s checks.  These instances are quite rare and are a specific response to obstacles related to the sale.  Any such deviation from our customary procedure will be announced at the action and, if the opportunity allows, on our website.

When and where are these auctions held?

These auctions are typically held at Noon on one of the last two Fridays of February, April, June, August, and October of each year.

 

Depending upon availability, auctions are normally held outside at the North Door of the Courthouse.  Due to inclement weather or other concerns, we may move the auctions inside the Courthouse.  We recommend that any potential bidders arrive a few minutes early to ensure that they are in the correct location.

 

Please check our website for updates and ask to be put onto our e-mailing list for last minute change notifications.

Can ProTax answer my legal questions about the properties?

No.  Sherman and Rodgers, PLLC is a private law firm that represents the Pender County Tax Collector.  Sherman and Rodgers, PLLC does not represent any bidder, taxpayer or any other party related to tax foreclosure auctions.

Consequently, Sherman and Rodgers is not permitted to give legal advice regarding these matters.  However, as a convenience to you, we do share with the public information upon which we rely in setting our standards of practice.

How does the auction itself work?

Auctions are open to the general public.  At the beginning of every auction, I read the following instructions regarding the bidding and upset bidding procedures.  Please review these instructions with care.

  1. My Name is Richard T. Rodgers, Jr. (otherwise known as Chip).  I have been appointed by the Court as a Commissioner to advertise and conduct this auction pursuant to N.C. Law.  In my current capacity, I am a Court Appointee and represent no parties and make no statements as to the quality of the title of any property sold today.  I will be presenting to all winning bidders a non-warranty Commissioner’s Deed. As a neutral Court appointee, I am obliged to refrain from making any statements as to any specific aspect of the property that is on sale today.  It is the duty of each buyer here to perform any and all research necessary prior to making any bid at this auction for any property.
     

  2. Please do not leave when the bidding ends.  As all the public notices of this sale require, the highest bidder here today must post with me a deposit of 5% of the amount bid.  There is no grace time to posting this deposit – it must be done immediately upon conclusion of the sale.  If the high bidder cannot produce the deposit, I am instructed by this same statute to resume the bidding immediately.  So if you wish to purchase the property, please do not leave until I announce that I have received the deposit required by law.  You all have an equal chance to be the highest bidder until the winning deposit is paid.
     

  3. Speaking of bids, at today’s auctions, there are no minimum incremental bids.  You can become the high bidder by bidding $1.00 more than the current high bid.  But please remember that once today’s sale is final, these same rules will not apply to the 10-Day Upset Bid Period.  That law requires a minimum upset bid increase of the greater of $750.00 or 5% to qualify as the new high bidder.  That 10-day upset bid period shall re-start upon each subsequent upset bid made.

Where can I find out information about properties in tax foreclosure?

Information regarding the properties in litigation can be found at the Sherman and Rodgers, PLLC website: 

http://www.shermanandrodgers.com/propertyforeclosures 

What type of Deed will I receive if I am the winning bidder?

The deed presented to the winning bidder is a “Commissioner’s Deed” without warranties as to the quality of title of the property. All bidders are responsible for ascertaining the quality of title to each property purchased.

Do I need an attorney to review the title before I purchase a property?

It is always recommended that every bidder seek the opinion of a North Carolina attorney before making a bid on any property.


Speaking in generalities, Sherman and Rodgers, PLLC makes every effort to convey clear title to each bidder at each sale. The reason for this is the better the quality of title, the better the sales price at auction. While Sherman and Rodgers, PLLC does not warrant or guaranty title to any property and does not make any specific statements regarding any specific property, it is the standard of practice of Sherman and Rodgers, PLLC to deliver titles at auction that are clear to the best of our knowledge, information and belief.


However, this statement may not be considered or used as a substitute for an opinion on any specific title by YOUR duly licensed North Carolina attorney.

Who pays current year's taxes?

Properties sold to high bidders are always sold SUBJECT TO taxes for the current year that are not yet delinquent as of the date the Order for Confirmation is filed. For example, suppose that the 2016 taxes are payable, but not delinquent until January 5, 2016. If a winning bidder purchased property at auction and an Order of Confirmation was filed on December 1, 2016, the new purchaser, would be responsible for the 2016 taxes.

Can a taxpayer still pay off taxes and redeem the property even if I am the highest bidder?

In extremely rare cases, this can happen. We have provided the NC Statute regarding this matter for your review:


NC Gen. Stat. 105-374 Foreclosure of tax lien by action in nature of action to foreclose a mortgage
(e) Subsequent Taxes. - The complaint in a tax foreclosure action brought under this section by a taxing unit shall, in addition to alleging the tax lien on which the action is based, include a general allegation of subsequent taxes which are or may become a lien on the same real property in favor of the plaintiff unit. Thereafter it shall not be necessary to amend the complaint to incorporate the subsequent taxes by specific allegation. In case of redemption before confirmation of the foreclosure sale, the person redeeming shall be required to pay, before the foreclosure action is discontinued, at least all taxes on the real property which have at the time of discontinuance become due to the plaintiff unit, plus penalties, interest, and costs thereon. Immediately prior to judgment ordering sale in a foreclosure action (if there has been no redemption prior to that time), the tax collector or the attorney for the plaintiff unit shall file in the action a certificate setting forth all taxes which are a lien on the real property in favor of the plaintiff unit (other than taxes the amount of which has not been definitely determined).


Orders of Confirmation are executed by a Judge and pursuant to a Judge’s schedule. Sherman and Rodgers, PLLC, typically presents Orders of Confirmation within 5 business days of the expiration of the upset bid period.

Can I visit the property before I place my bid?

As a neutral Commissioner appointed by the Court, we are not authorized, nor are we in any position, to make any statements as to the quality of title or boundaries of the same, other than to say that sale includes the area bounded by the Parcel ID supplied by the Pender County Assessor.

 

Different laws apply to whether it is lawful to ‘visit’ properties that are available for sale. It is with the utmost sincerity that we ask you seek your independent legal counsel on your rights as it relates to going to ‘see’ the properties that we are offering for sale.

Thank you for your inquiry. If you have any questions that relate to specific property, kindly seek the assistance of a North Carolina Attorney. If you do not know a North Carolina attorney, you may contact the NC Bar Association Lawyer Referral Service at 1-800-662-7660 at no charge to you.

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