Tax Foreclosures

Tax Foreclosure

Once a real property tax bill has become delinquent, the Tax Director may use the In Rem method of Foreclosure to satisfy the tax lien on the real property, as stated in the NCGS 105-375 (PDF). All sales are conducted by The Gaston County Sheriff's Office, and the property is sold "as is", with no warranties or guarantees.

Bidding on a Tax Foreclosure at Auction

The Highest Bidder at the public sale is required to have a 20% deposit in cash or certified funds (made out to The Gaston County Sheriff's Office) at the sale. If you do not have the full 20% deposit for your highest bid, the property will be resold on the spot. The 10-day upset bid period begins once the report of sale is filed with The Gaston County Clerk of Court.

The Upset Bid Period

There is a 10-day upset bid period, in which the bid may be upset by filing an upset bid form at the Gaston County Clerk of Court. The upset bid must exceed the current bid by 5% or $750 - whichever is greater. If a bid is $15,000 or less, the required deposit is $750. If a bid is anything over $15,000, the required deposit is 5% of your bid. Upset bids are to be made in person at the Gaston County Clerk of Court and must be paid in Cash or Certified Funds (payable to Gaston County Clerk of Superior Court). Each time a bid is placed, the 10-day upset bid period restarts. The owner of the property has the right to redeem the property being foreclosed on during the upset bid period. All taxes must be paid in full for the foreclosure to stop.

Winning the Bid

At the end of the Upset Bid period, the highest bidder will be contacted and will have 10 days to bring the remaining funds to the Gaston County Tax Office. Funds must be paid in cash or certified funds (payable to The Gaston County Sheriff's Office). If the High Bidder does not bring the remaining funds, they forfeit their deposit and the property will be resold. All properties sold may be subject to IRS Tax Liens, City/County Taxes for any years not covered under the judgment, and other restrictions of record. It is your responsibility to research and obtain information regarding the property prior to sale. The Purchaser will receive a non-warranted sheriff's deed upon completion of the sale. The Purchaser is responsible for the payment of any excise tax due to the Register of Deeds office, and all recording fees. The deed description may include portions of land that have already been sold off by the current owner and are not subject to the sale.

Related Documents