How Upset Bids Work in North Carolina
6 min read · NC Foreclosure Law
What Is an Upset Bid?
North Carolina is one of only a few states that allows third parties to outbid the winning bidder after a foreclosure auction closes. This post-auction bidding mechanism is called an upset bid.
After the courthouse auction ends, the public has 10 days to file an upset bid with the county clerk. If a valid upset bid is filed, the clock resets and runs for another 10 days. This continues indefinitely until a full 10-day period passes with no new bids — only then does the highest bidder take the property.
The Minimum Upset Bid Amount
An upset bid must exceed the current high bid by at least 5%, subject to a minimum increase of $750. Whichever is greater applies.
Example:
- Auction winning bid: $85,000
- 5% of $85,000 = $4,250
- Minimum $750 floor doesn't apply here (5% is higher)
- Minimum upset bid: $89,250
How to File an Upset Bid
To file an upset bid in Mecklenburg County:
- Go to the Mecklenburg County Clerk of Superior Court at 832 E. 4th Street, Charlotte, NC 28202
- Bring a certified check or cash for a deposit equal to 5% of your proposed bid (minimum $750)
- Complete the upset bid form and submit it to the clerk within 10 calendar days of the auction (or previous upset bid)
- The clerk will notify the previous high bidder, who gets their deposit back
- If no one outbids you in the next 10 days, you close on the property
Note: Mecklenburg County accepts upset bids during business hours (Monday–Friday, 8:00 AM–4:00 PM). Time your filing accordingly.
Strategy: Should You Bid High at Auction?
Many Charlotte investors intentionally bid low at auction, planning to be upset-bid and then re-enter. Others bid at their true maximum to discourage upset bids. Here's how to think about it:
- Bid at your maximum if the property is rare and competition is expected. Forcing a competitor to pay 5% more might price them out.
- Bid slightly below your maximum if you want room to come back with an upset bid without competing against yourself. You don't have to be the auction winner to ultimately win the property.
- Monitor the upset bid period — CLT Foreclosures tracks upset bid activity so you can see when a property you lost is being contested.
Tracking Upset Bid Deadlines
Missing the 10-day window by even one business day means losing your chance. Use our Deadline Tracker to set reminders for upset bid windows on properties you're watching.