High Point Bank v. Highmark and Guarantor Liability in North Carolina

Submitted by guest bloggers Chad Ewing and Dirk Lasater.

When a borrower’s default results in a foreclosure sale and purchase of the secured property by the mortgagee lender, can a guarantor’s deficiency liability be reduced by the difference between the property’s fair market value and its foreclosure sale price?  Prior to last year, this question was answered in North Carolina consistently, and overwhelmingly, in the negative.  However, the North Carolina Supreme Court conclusively reversed this line of decisions in High Point Bank and Trust Company v. Highmark Properties, et al., ___S.E.2d___, N.C. Sep. 25, 2015.

Continue reading…on WCSR.com.

About the authors

Chad Ewing is a litigator in Womble Carlyle’s Charlotte office with over ten years’ experience representing banks and other financial institutions in a variety of matters in federal and state courts across North Carolina.  Chad attempts to understand his client’s goals and use his creativity and experience to help them solve their problems.

Dirk Lasater provides active, engaged representation to banks and other financial institutions in commercial and consumer finance litigation at both the state and federal levels.  Dirk has experience with commercial contract disputes, commercial lending and residential lending claims.  He practices in Womble Carlyle’s Charlotte office.