Foreclosure in North Carolina: Elements that must be proven at the clerk's level hearing
North Carolina General Statute 45-21.16 addresses power of sale foreclosures in the State of North Carolina. The statute dictates that the hearing for the power of sale foreclosure is held before the clerk of court in the county where the land is situated. The clerk need only find four elements met to proceed with foreclosure.
According to the statute, these are:
i) existence of a valid debt
ii) the debtor has defaulted
iii) the instrument evidencing the debt permits foreclosure
iv) proper notice
Equitable arguments such as fraud will not be heard at the clerk's hearing. If a defendant feels there is an equitable argument they would like to present to the court, it is in their best interests to consult a North Carolina licensed attorney to explain their rights.