State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_53 > GS_53-263

§53‑263.  Limits on borrowers' liability.

(a)        When a reversemortgage loan becomes due, if the borrower mortgaged one hundred percent (100%)of the full value of the house then the amount owed by the borrower shall notbe greater than (i) the fair market value of the house, minus sale costs, or(ii) the outstanding balance of the loan, whichever amount is less.

(b)        If the borrowermortgaged less than one hundred percent (100%) of the full value of the house,the amount owed by the borrower shall not be greater than (i) the outstandingbalance of the loan, or (ii) the percentage of the fair market value, minussale costs, as provided in the contract, whichever amount is less.

(c)        The lender shallenforce the debt only through the sale of the property and shall not obtain adeficiency judgment against the borrower. (1991, c. 546, s. 1; 1995, c.115, s. 1.)