Agenda - 09-06-1983 - Laserfiche WebLink

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O42 z f i g lice ion Part II _ FORMS FOR USE IN A FORECLOSURE ACTION UNDER G.S. 105-375 it he p tdg• An alternative method of foreclosure to the mortgage type of foreclosure is .2!for made available to taxing units by G.S. 105-375.This is the in rein method of ts as foreclosure,and it is a relatively simple and inexpensive means of foreclos- ing the tax lien and selling the property, thereby returning the property to the ctive tax rolls. The legal theory underlying the in rem method of foreclosure is that the land itself—the res—is being proceeded against, rather than the landowner. It is upon this theory that the summary notice , 1 procedures are justified. • There are two prerequisites to use of the in rem procedure:The taxing unit must have held a sale of tax liens as required by G.S. 105-369;and the hat t-2.,governing board of,the-taxing unit must clirect-the,tax-collector-to.file-tax,. y a =cercates,,as judgments(thereby beginning the in rern foreclosure.Notice ) of the docketing of the judgment is required to be sent by registered or cer- tifiedimail to the listing taxpayer at his last known address.After the judg-. _ ment has been docketed for six months,execution may be issued on-the judg- • ..... ment and the property sold under execution. Notice must be mailed to the ... taxpayer l isdn taxpayer;and yoe rt other rt may have reOpsaelitytharectethivee actual I notice of the foreclosure action.Notice is mailed to lien holders only if they have filed a request for such notification with the tax collector. By adding appropriate allegations, the in rem procedure can be used to foreclose the liens of special assessments." It is inot within the scope of this introduction to defend or attack the con- . 1 • stitutional validity of the in rem method of foreclosure. The decision in pethiesotimnsewexhoecumtia eisansuei:ItterAtesistinnotht necessary fiendei-son County v. Osteen(1977),"however,went a long way toward es- tablishing the position that in rem foreclosures are constitutional if con- 1 ducted strictly in accordance with the statute.The lesson of that case and of its successor is that every required step called for hy G.S. 105-375 must be taken and documented. A record of every step taken should be made, and copies clif all significant documents should be placed in the file. Foreclosure History