Behind on Property Taxes in Moore County, NC?

Back Taxes in Moore County: Your Options

This page explains what happens in Moore County, North Carolina when property taxes on a lot go unpaid. It covers the due dates, the interest, how the county collects, how a tax foreclosure works, how to find out what you owe, and the choices you have. It is written for owners of vacant land, including people who inherited a lot with back taxes.

Back taxes do not stop you from selling. North Carolina does not sell tax liens to investors, so the county itself holds the claim. Until a foreclosure sale is confirmed, you still own the land, and you can pay the taxes or sell the lot and have the taxes paid from the sale at closing. This page is general information, not legal advice; for your own case, ask the Moore County Tax Department or a North Carolina attorney.

When Moore County property taxes are due and when interest starts

The Moore County Tax Department in Carthage lists, appraises and collects property tax. Bills are due September 1. The county gives a 2 percent discount if you pay by August 31, but the discount does not apply to the town portion of the bill in Aberdeen, Cameron, Carthage, Pinehurst, Southern Pines, Taylortown, Vass and Whispering Pines. You have until January 5 to pay without added charges.

You can pay in person at One Courthouse Square in Carthage (Monday to Friday, 8 am to 5 pm), by mail to PO Box 457, Carthage, NC 28327, by phone at 1-855-451-2620, or online through the county's InvoiceCloud portal. Card payments by phone or online cost 2.75 percent (minimum $1.95); an e-check costs $1.50.

State law sets the interest. Taxes are due September 1. If you pay before January 6, you pay no interest. On January 6, interest of 2 percent is added. From February 1, interest of 3/4 of 1 percent is added for each month, or part of a month, until the bill is paid in full (G.S. 105-360). That is about 9 percent a year on top of the first 2 percent.

What happens next: collection, advertisement and tax foreclosure

Unpaid property tax is a lien on the land (G.S. 105-355). Each year, by the first Monday in February, the county tax collector reports the unpaid taxes that are liens on real property to the Board of Commissioners. The county then advertises those tax liens between March 1 and June 30, in the newspaper and at the courthouse. At least 30 days before the ad runs, the tax collector must mail a notice to the owner (G.S. 105-369).

The county can also collect from the owner personally. After taxes are delinquent, the tax collector may attach wages, rents, bank accounts and other money owed to the taxpayer, and may levy on and sell personal property such as vehicles (G.S. 105-366 and 105-368). A wage garnishment may take no more than 10 percent of pay in any one pay period (G.S. 105-368). The Moore County Tax Department asks owners who cannot pay to contact it before January 5 about a payment agreement, to avoid collection remedies.

If the taxes are still unpaid, the county may foreclose the tax lien on the land. State law gives two methods. In the first, the county files a lawsuit in superior court, like a mortgage foreclosure (G.S. 105-374). The court names a commissioner, who sells the land at a public auction at the courthouse. Reasonable attorney fees are added to the costs. In the second, the in rem method, the county files a certificate of the taxes with the clerk of superior court at least 30 days after the tax liens were advertised. It must first mail a notice to the owner at least 30 days before docketing, and it adds a $250 administrative fee. The docketed certificate works like a court judgment, and the sheriff may sell the land at any time from 3 months to 2 years after the judgment is indexed, after 30 days' notice (G.S. 105-375).

Moore County's Collections page says foreclosure is the county's last resort, and that the county uses an outside firm, Zacchaeus Legal Services, to run its tax foreclosures under G.S. 105-374 (the lawsuit method). Sales are held at the Moore County Courthouse, 102 Monroe Street, Carthage. The winning bidder pays a 20 percent deposit in cash or certified check at the sale, and the balance within 30 days when the deed is delivered. The Tax Department's FAQ says the foreclosure process may start in April of the year the bill becomes delinquent, and that sales are posted on the county website and in The Pilot newspaper about four weeks ahead.

The foreclosure sale, upset bids and leftover money

The land is sold at public auction to the highest bidder (G.S. 105-374). The sale is not final on auction day. For 10 days after the sale is reported, anyone may file a higher bid, called an upset bid, with the clerk of superior court (G.S. 105-374 and G.S. 1-339.25). Moore County says the upset bids are accepted at the Clerk of Superior Court's office. Under G.S. 1-339.25, an upset bid must beat the last bid by at least 5 percent, with a minimum increase of $750. Each new upset bid starts a new 10-day period. When no more upset bids come in, the court confirms the sale and the buyer receives a deed.

Until the sale is confirmed, the owner can usually stop the foreclosure by paying all taxes due, plus interest, penalties and costs, including the county's attorney fees (G.S. 105-374(e)). The longer the case runs, the higher the costs.

If the land sells for more than the taxes and costs, the extra money does not stay with the county. After the costs, taxes and other liens are paid, the remaining money goes to the persons entitled to it, which can include the former owner. The clerk holds it until that is settled (G.S. 105-374). If you think you are owed surplus money, contact the clerk of superior court.

How much you owe, and your options

Start with the Tax Department's online tax bill search, which shows each bill and whether it is paid. You can also look up the parcel in the county's real property lookup.

For a delinquent account, call the Tax Department at 910-947-2255 or the collections line at 910-947-4116, or email taxinformation@moorecountync.gov. Ask for the total to pay all unpaid years through a given date. Interest adds up each month, so the amount depends on the day you pay.

If your land is already in a foreclosure case, the payoff also includes court costs and attorney fees. Ask the Tax Department for the amount and who handles the case, since Moore County uses Zacchaeus Legal Services for its foreclosures.

Once you know the amount, you have several choices. Each one has costs and tradeoffs, so look at all of them before you decide.

• Pay in full. Paying all delinquent years, interest and costs ends collection and clears the lien.
• Ask for a payment agreement. Moore County asks owners to contact the Tax Department before January 5 to set one up. Partial payments are allowed before taxes are past due. Get the terms in writing.
• Sell the land. You can sell with back taxes owed. The closing attorney pays the Tax Department from the sale price.
• Let it go. If you do nothing, the county can use collection remedies and foreclose. You lose the land at the foreclosure sale. Costs and attorney fees are added to the debt first. If the sale brings in more than is owed, you may be able to claim the extra money from the clerk.

How selling works when taxes are owed

In North Carolina, a licensed attorney handles a real estate closing. The North Carolina State Bar says a nonlawyer may not handle a residential real estate closing, which includes the title review, the deed and the recording. The closing attorney checks the tax records and gets a payoff from the county tax office.

At closing, the attorney pays the county tax office from the sale price. That pays the delinquent years, the interest and any costs, and clears the tax lien. You receive the rest. If a foreclosure case has started, the attorney also asks the county's attorney for the full amount needed to end the case, because that amount includes court costs and attorney fees.

Because North Carolina does not sell tax liens, there is no outside investor to pay off. One payment to the county clears the taxes.

What EasyLotBuyer does

EasyLotBuyer buys vacant land in Moore County for cash, including lots with back taxes, liens, title issues or no road access. We make a cash offer within 24 hours. There are no fees or commissions, and we pay the closing costs. We can close in as few as 7 days.

When a lot has back taxes, they are paid off at closing from the sale. You do not need to pay them first. If you would rather keep the land, the contacts on this page are the right places to start.