North Carolina § 75-121 - Foreclosure rescue transactions prohibited; exceptions; violation.

§ 75-121. Foreclosure rescue transactions prohibited; exceptions; violation.

It is unlawful for a person or entity other than the transferor to engage in, promise to engage in, arrange, offer, promote, solicit, assist with, or carry out a foreclosure rescue transaction for financial gain or with the expectation of financial gain, unless prior to or at the time of transfer, the transferee pays the transferor at least fifty percent (50%) of the fair market value of the property as determined by a certified appraiser. An appraisal to determine the fair market value of the property must be performed no more than 120 days prior to the transfer. The appraisal shall be delivered to the transferor no less than seven days prior to the time the transferor becomes obligated to perform the agreement. This section does not apply to exempt transactions. Every contract to effectuate a foreclosure rescue transaction in which the transferee pays at least 50% of the fair market value of the property, shall be in writing, shall be signed and acknowledged by all parties to it, and shall contain all the terms to which the parties have agreed. The contract shall contain at least all of the following: The names and addresses of all parties to the contract. The legal description of the property being transferred. Any financial obligation of the transferor that will be assumed by the transferee. The total amount to be paid by the transferee in connection with the transaction. The fair market value of the property as determined by a certified appraiser. A description of the interest in the property retained by the transferor as provided in G.S. 75-120(3)d. The terms of the transferor's right to any future possessory or ownership interest in the property. History (2010-164, s. 2; 2015-178, s. 5(b).) Editor's Note. - Session Laws 2010-164, s. 6, made this section effective October 1, 2010, and applicable to transactions entered on or after that date. Session Law 2015-178, s. 6, made the amendments to this section by Session Laws 2015-178, s. 5(b), applicable to transactions entered into on or after October 1, 2015. Effect of Amendments. - Session Laws 2015-178, s. 5(b), effective October 1, 2015, substituted "certified appraiser" for "licensed appraiser" at the end of the first sentence and "120" for "90" in the second sentence of subsection (a); rewrote the third sentence of subsection (a); and substituted "certified" for "licensed" preceding "appraiser" in subdivision (b)(5). For applicability, see editor's note.