General Information about the Tax Collection Foreclosure Process
Before the Haywood County Tax Department proceeds with a legal action, notice is given to the property owner by letters, notices, etc., in accordance with North Carolina law. The Tax Department only forecloses if there is no response from the property owner after action is taken or if the property owner 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:
- In-Rem Foreclosures: The Tax Department and the County Attorney’s 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)
- 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
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.
Location on Sale: Foreclosure sales will be handled by a public auction in front of the Haywood County Justice Center. 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 auctioned property: You can bid on any property by attending the sale at the justice center on the day it is scheduled to take place. The person conducting the sale will announce the actual opening bid for each property at the time of sale. A deposit of 20 percent (20%) of the bid will be required following the sale, and the balance of the price bid must be paid at the end of the ten day period and confirmation of the sale.
Upset Bid process: An upset bid is an advanced, increased, or raised bid whereby a person offers to purchase real property theretofore sold for an amount exceeding the reported sale price or last upset bid by a minimum of five percent (5%) thereof, but in any event with a minimum increase of seven hundred fifty dollars ($750.00). This has to be filed at the Clerk of Superior Court’s office in the Haywood County Justice Center. Except as provided in G.S. 1‑339.66A and G.S. 1‑339.69, there shall be no resales; however, there may be successive upset bids, each of which shall be followed by a period of 10 days for a further upset bid.
Foreclosed County Owned Property: A person interested in making a bid should go to the Office of the County Manager on the third floor of the Haywood County Courthouse. The increased bid must exceed the current bid by 10 percent (10%) of the first $1,000 and five (5%) of the remainder. To make an increased bid a deposit of 10 percent (10%) of the amount of the new high bid must be delivered to the Office of the County Manager by cash or certified check or cashier's check made out to Haywood County.
**North Carolina does not sell Tax Liens or Tax Certificates over the counter.**