NORTH CAROLINA POWER OF SALE

                        FORECLOSURE PROCESS

1.      Substitute Trustee

2.      Notice of Hearing commences the foreclosure action

3.     Notice may be served personally (10 days) or posted (20 days)

4.     Hearing before Clerk of Court  (10 days to appeal order)

a.      Service of Process

b.      Valid debt

c.       Default

d.      Right to foreclose

5.      Notice of Sale

a.      Posted for 20 days

b.      Served 20 days before sale (25 days for IRS)

c.      Published in newspaper for 2 consecutive weeks

6.      Sale Day

a.     Opening bid by the lender; between 10am and 4pm

b.      5% down in cash or certified funds

c.      Could be postponed with notice, or canceled without notice

d.      Report of Sale

e.      Sale not final until upset bid period expires (10 days)

7.      Final Report filed and Notice of Foreclosure recorded

A high bidder who defaults on its bid is liable for fees and costs of re-sale plus any loss to the lender.

A Trustee Deed conveys no warranty of title - AS IS Purchase.

Title must be examined to avoid risks of outstanding liens or potential defects in the foreclosure action.