SB 1400 requires that foreclosures must proceed through the judicial foreclosure process (rather than power of sale) when the homeowner is on active military duty and the mortgage was entered into prior to active duty service. The bill is meant to complement the Servicemembers Civil Relief Act (SCRA). SCRA already required that a hearing be held before a judge to decide whether a stay in foreclosure proceedings is warranted under SCRA. However, since the power of sale process takes place with the clerk of court and not a judge, there was some concern that the foreclosure process in North Carolina didn't fully comply with SCRA requirements.
