§ 45-21.36. Right of mortgagor to prove in deficiency suits reasonable value of property by way of defense. - North Carolina Statutes

§45‑21.36.  Right of mortgagor to prove in deficiency suits reasonablevalue of property by way of defense.

When any sale of real estatehas been made by a mortgagee,  trustee, or other person authorized to make thesame, at which the mortgagee, payee or other holder of the obligation therebysecured becomes the purchaser and takes title either directly or indirectly,and thereafter such mortgagee, payee or other holder of the secured obligation,as aforesaid, shall sue for and undertake to recover a deficiency judgmentagainst the mortgagor, trustor or other maker of any such obligation whoseproperty has been so purchased, it shall be competent and lawful for thedefendant against whom such deficiency judgment is sought to allege and show asmatter of defense and offset, but not by way of counterclaim, that the propertysold was fairly worth the amount of the debt secured by it at the time andplace of sale or that the amount bid was substantially less than its truevalue, and, upon such showing, to defeat or offset any deficiency judgmentagainst him, either in whole or in part: Provided, this section shall notaffect nor apply to the rights of other purchasers or of innocent thirdparties, nor shall it be held to affect or defeat the negotiability of any note,bond or other obligation secured by such mortgage, deed of trust or otherinstrument: Provided, further, this section shall not apply to foreclosuresales made pursuant to an  order or decree of court nor to any judgment soughtor rendered in any foreclosure suit nor to any sale made and confirmed prior toApril 18, 1933. (1933, c. 275, s. 3; 1949, c. 720, s. 3; 1967, c. 562,s. 2.)