Property Ownership
Under NC law, a 'foreclosure by action' (judicial foreclosure) differs from a 'power of sale foreclosure' in that:
APower of sale is faster and requires no court involvement✓ Correct
BJudicial foreclosure goes through the courts and provides a greater right of redemption to the borrower
CThey are the same procedure
DJudicial foreclosure is faster in NC
Explanation
NC's power of sale foreclosure (non-judicial) is typically faster — it requires a hearing before the Clerk of Superior Court but not a full judicial trial. Judicial foreclosure goes through the full court process, providing broader defenses for the borrower.
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Key Terms to Know
Deed
A written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
EasementA non-possessory right to use another person's land for a specific purpose.
EncumbranceAny claim, lien, charge, or liability attached to real property that affects its value or limits its use.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
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