Substitute Trustee's Deed
(NC)

Summary

This substitute trustee's deed can be used in North Carolina to transfer title to foreclosed real property to the winning bidder at a foreclosure sale. This template contains practical guidance and drafting notes. A deed of trust is the preferred security instrument in North Carolina and most residential foreclosures in North Carolina are nonjudicial foreclosures brought pursuant to N.C. Gen. Stat. § 45-21.16 et seq. At the outset of the foreclosure process, the foreclosing lender typically replaces the existing trustee under the deed of trust with an individual (usually an attorney) or an entity that serves as the substitute trustee. The substitute trustee is a neutral third-party who commences and carries out the foreclosure proceeding. After the foreclosure sale, the substitute trustee files a report of sale with the clerk of court. That report shows the opening bid amount and the high bid at the sale. The bid is held open for 10 days after the time and date of the foreclosure sale for upset bids to be placed. After the 10-day period expires and the bid becomes fixed, the buyer has a reasonable time to close and complete the transaction. When the deal closes, a deed is drawn by the substitute trustee and filed with the Register of Deeds in the county where the property lies. The trustee will also file a notice of foreclosure with the clerk of court to signal that the transaction has been completed. For further guidance on the foreclosure process in North Carolina, see Commercial and Residential Foreclosure (NC) and Foreclosure Resource Kit (NC).