How to get started in tax deed investing in NC

[Tamara Jackson]

Hello fellow real estate investors!

I'm excited to dive into the world of tax deed investing in North Carolina. However, I'm just starting out and looking for some guidance on where to begin my journey.

I've done some research online, but I'd love to hear from those with experience in this field. Can anyone recommend the best places to learn about tax deed investing in NC, particularly in Union County and Cabarrus County (near the Charlotte area)? Are there any specific courses, resources, or meet ups that have been helpful to you?

I want to make sure I have a solid foundation and understand the ins and outs of this type of investing before getting started. Any recommendations, tips, or advice would be greatly appreciated!

Thank you in advance for your help and expertise. 

[Sriv Nava]

Within the context of North Carolina, the statutes outline two distinct procedures for tax foreclosure. The first procedure, outlined in Section 105-374 of the North Carolina General Statutes (referred to hereafter as G.S.), pertains to a mortgage-style process and necessitates the initiation of a standard civil action within the state court. This process is characterized by its more stringent requirements.

Conversely, the second procedure, as established by G.S. 105-375, involves an in rem approach. This expedited procedure allows a taxing unit to register a judgment against the property in the state court, facilitating a foreclosure sale after a period of three months. The choice between utilizing either Section 105-374 or 105-375 for foreclosure rests with the county attorney. For instance, Alamance County opts for the In Rem procedure outlined in 105-375.

If one successfully secures a bid on a Tax Deed resulting from a foreclosure carried out under the auspices of 105-375, the prospect of securing title insurance from a title company becomes exceedingly challenging, if not improbable. In such scenarios, recourse may involve engaging an attorney to initiate a quiet title action subsequent to the foreclosure process. This action aims to rectify the title status and establish a clear, marketable title. The intricacies involved in these post-foreclosure proceedings are not to be underestimated.