Delinquent Taxes And Foreclosures

Delinquent Taxes

All property taxes paid after the due date are delinquent and subject to interest. Interest accrues at the rate of 2% for all real and personal property for the first calendar month or any fraction thereof and 0.75% for each subsequent month or fraction thereof, until paid.

North Carolina General Statutes require advertisement of tax liens on real estate. If property taxes remain unpaid, the name of the property owner(s) as of the date the taxes became delinquent and amounts owed for each parcel are advertised in the local newspaper, usually in mid-March. Although we do not wish to embarrass taxpayers by doing this, it is mandatory since it is the first step in the foreclosure procedures.

In addition to foreclosure on real estate, there are other alternatives available to the tax office to enforce collections. These can begin as soon as a tax falls delinquent. They include garnishment of wages, attachment of bank accounts, rents, or state income tax returns, levy on personal property, and the use of a collection agency to attempt to collect delinquent accounts and report those debts to the three major credit bureaus.

We do accept partial payments on accounts prior to the due date. To avoid enforcement of collections, the bill must be paid in full by the delinquent date. If you are unable to have the bill paid in full by the delinquent date, please contact our office at (704) 920-2119 as soon as possible to establish an approved plan to resolve the tax debt. For your convenience, Cabarrus County also accepts full or partial pre-payments prior to issuing annual tax bills.

Property Tax Foreclosure

Foreclosure sales are properties sold due to delinquent tax liens after other collection efforts have been exhausted. The process of foreclosure, from start to finish, can take as little as 60 days or as long as 18 months.

Owners or lienholders have until the day of sale to pay taxes and fees in full, which would stop the sale of the property. The County opens bidding at the amount equal to delinquent taxes, interest and legal costs.

Anyone may offer an amount over the County's bid at public auction and obtain ownership upon completion of a 10-day upset bid period. The foreclosure sale will be made subject to all outstanding County, city, fire district taxes and all local improvement assessments against the described property not included in the judgment. All other liens on the property may be extinguished at time of sale.

The Collections department maintains the tax foreclosure listing; however, the office does not maintain or provide a mailing list of these properties. When foreclosure properties are ready, the sale dates and times are posted.

Foreclosure sales are held on the Cabarrus County Courthouse steps, 77 Union Street South, Concord, NC, 28025 at the date and time assigned by the courts. This information is updated on the listing and calendar. You must be in attendance at the sale to bid on a property.

At the time of sale, if you are the highest bidder, the attorney will require a deposit of 20% of the amount of the bid. Only cash, money orders or certified funds are accepted for a deposit on the sale day. Cabarrus County does not offer financing, although you could possibly obtain financing from a financial institution.

The sale is subject to a 10-day upset bid period as required by law. Upset bids must be submitted in person at the Cabarrus County Courthouse, office of the Clerk of Superior Court, Room 104. Provide the court case number, available on the listing, to the office of the Clerk of Superior Court in order for the record to be accessed. Upset bids require a 5% increase over the last highest bid, with a minimum increase of $750. Inquiries regarding close out status of foreclosure sales must be made in person at office of the Clerk of Superior Court.

If you are the highest bidder at the close of the upset bid period, final payment is due in the foreclosure attorney's office upon delivery of the Commissioner's deed, no later than 30 days after completion of the 10-day upset bid period. Unless otherwise stated in the notice of sale, all other liens with the exception of current year taxes, if applicable, are eliminated when the Commissioner's deed is issued and recorded.

It is recommended you seek legal advice in the foreclosure process from your personal attorney. If you have specific questions regarding a property you can contact the Collections department at 704-920-2118.