Triangle Homes complied with the upset bid requirements and no one filed another upset bid. Under North Carolina law, there is a 10-day upset bid period after a foreclosure sale during which anyone can bid on the property by offering to purchase the property for at least 5% greater than the previous high bid and by depositing a bid deposit of 5% of the upset bid with the Clerk of Court. Meanwhile, Triangle Homes filed an upset bid in the Village’s judicial foreclosure. On November 14, 2013, there was a foreclosure sale under the federal tax lien. The Village commenced a judicial foreclosure and had a sale on November 13, 2013, at which it was the high bidder.Īt the same time, the IRS was pursuing a federal tax levy on the property. A federal statute requires notice be given to the United States but, for reasons unknown, the Village provided no notice. Later, the Village of Sugar Mountain obtained a third lien for unpaid property taxes on the same property and sought to foreclose its tax lien. In this case, the Internal Revenue Service ("IRS") had recorded two tax liens against real property in Avery County. In determining who had good title to the property, the case teaches us about the priority of local and federal tax liens and the statutory obligation to notice the United States in a foreclosure involving property subject to a federal tax lien. Both proceedings resulted in foreclosure sales, but the deeds went to different high bidders.
One foreclosure proceeding was for unpaid municipal taxes and the other for unpaid federal taxes.
Triangle Homes is a North Carolina Court of Appeals case with dueling tax foreclosure proceedings involving the same property.
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