How does the foreclosure process work in North Carolina?

The foreclosure process in North Carolina primarily functions through a mechanism known as "power of sale," which allows lenders to sell a property to recover the loan amounts owed when the borrower defaults. In this context, the lender can initiate the foreclosure process without needing to go through a court ruling.

In North Carolina, once a borrower fails to meet the mortgage payment obligations, the lender may commence foreclosure proceedings by directly selling the property at a public auction after following the proper legal notice requirements. This process is designed to allow for a speedy resolution and aims to enable lenders to recoup their financial losses by liquidating the asset in question.

While mediation and attempts at renegotiating loan terms can occur prior to reaching this stage, they are not the primary mechanism of foreclosure in the state. The focus remains on the sale of the property to satisfy outstanding debts, making the correct answer appropriate in the context of the state's laws regarding foreclosure.