A BILL TO BE ENTITLED
AN ACT to improve the foreclosure process.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 45‑21.16(c)(7) reads as rewritten:
"(7)	The right of the debtor (or other party served) to appear before the clerk of court at a time and on a date specified, at which appearance he shall be afforded the opportunity to show cause as to why the foreclosure should not be allowed to be held. The notice shall contain all of the following:
a.	A statement that if the debtor does not intend to contest the creditor's allegations of default, the debtor does not have to appear at the hearing and that his failure to attend the hearing will not affect his right to pay the indebtedness and thereby prevent the proposed sale, or to attend the actual sale, should he elect to do so.
b.	A statement that the trustee, or substitute trustee, is a neutral party and in the event that the debtor contests the issues presented in the foreclosure hearing, the trustee, or substitute trustee, shall not advocate for the lender or for the debtor.
c.	A statement that the debtor has the right to file a separate lawsuit pursuant to G.S. 45‑21.34 in which the debtor may be able to assert legal or equitable claims against the maker or holder of the loan and in which the debtor may apply to a judge of the superior court for injunctive relief stopping the mortgage sale prior to the time that the rights of the parties to the sale or resale become fixed.
d.	A statement that the debtor has the right to appear at the hearing and serve a written response.
e.	A statement that if the debtor fails to appear at the hearing, the trustee will ask the clerk for an order to sell the debtor's home.
f.	A statement that the debtor has the right to contest the allegations in the notice."
SECTION 2.  G.S. 45‑21.29(k) reads as rewritten:
"(k)	Orders for possession of real property sold pursuant to this Article, in favor of the purchaser and against any party or parties in possession at the time of application therefore, may be issued by the clerk of the superior court of the county in which such property is sold, when:
(1)	Such property has been sold in the exercise of the power of sale contained in any mortgage, deed of trust, leasehold mortgage, leasehold deed of trust, or a power of sale authorized by any other statutory provisions,
(2)	Repealed by Session Laws 1993, c. 305, s. 18.
(2a)	The provisions of this Article have been complied with,
(3)	The sale has been consummated, and the purchase price has been paid,
(4)	The purchaser has acquired title to and is entitled to possession of the real property sold,
(5)	 Thirty days' notice has been given to the party or parties who remain in possession at the time application is made, and
(6)	Application is made by petition to such clerk by the mortgagee, the trustee, the purchaser of the property, or any such person's authorized representative."
SECTION 3.  This act becomes effective October 1, 2005, and applies to any loan agreement entered into on or after that date.