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5 <br /> 442 <br /> ;lice <br /> sion Part 11 <br /> FORMS FOR USE <br /> IN A FOREi:;LOSURE ACTION <br /> UNDER G.S.' <br /> 105-375 <br /> it he <br /> 14g. <br /> !for An alternative method of foreclosure to the mortgage type Of foiedosure is <br /> is as made available to taxing units by G.S. 105-375.This is thein rem methodof <br /> foreclosure,and it is a relatively simple and inexpensive means of foreclos. <br /> ing the tax lien and selling the property, thereby returning the property to <br /> the 'active tax rolls. The legal theory underlying the in rem method of <br /> foreclosure is that the land itself—the res—is being proceeded against, <br /> I <br /> rather than the landowner.It is upon this theory that the summary notice <br /> procedures are justified. <br /> There are two prerequisites to use of"the in rem procedure-.The ta g <br /> xin <br /> unit must have held a sale of tax liens as required by G.S. 105-369,and the <br /> I <br /> hat r---vverning board Of,the-taxing unit must direct,thetax-collectorAo-file-taxes <br /> )y a Certificates;,as judgments;-thereby beginning the in rern <br /> foreclosure.Notice <br /> 1 <br /> of the docketing of the judgment is required to be sent by registered orcer- <br /> tified1mail to the listing taxpayer at his last known address.After the judg-� <br /> meat has been docketed for six months, <br /> I execution maybe issued on-the judg- <br /> meat and the property sold under execution.Notice must be mailed to the <br /> listing taxpayer at the time execution is issued.It is not necessary that the <br /> taxpayer and other persons who may have an interest in the proper,ty receive <br /> actual notice of the foreclosure action.Notice is mailed to lienholders only if <br /> they have filed a request for such notification with the tax collector. <br /> By adding appropriate allegations, the in-rem procedure can be used to <br /> foreclose the liens of special assessinents.17 <br /> It is not within the scope of this introduction to defend or attack the con- <br /> stitutional validity of the in rem method of foreclosure. The decision in <br /> Hendiison County v. Osteen(1977),18 however,went a long way toward es. <br /> tablishing theposition that in rem foreclosures are constitutional if con. <br /> ducted strictly in accordance with the statute.The lesson of that case and of <br /> its successor's is that every required step called for by G.S. 105-375 must be <br /> taken and documented. A record of every step taken should be made, and <br /> copies df all significant documents should be placed in the file. <br /> Foreclosure History <br />