The North Carolina Supreme Court has shot down attorneys fee double dipping in a non-judicial setting last week. The decision is in the case:
In re Foreclosure of the Deed of Trust of Vogler Realty, Mortgagor-Grantor, to Charles N. Stedman, Tr., & J.B. Lee & Co., a N.C. Gen. P'ship, Noteholder, No. 11A11, 2012 N.C. LEXIS 27 (N.C. 2012)
Anyone facing a non-judicial foreclosure in North Carolina should read this decision. Though it expressly refuses to allow a trustee to pay himself a trustee's fee, as well as an attorneys fee, the amounts acceptable as trustee's fees in North Carolina are truly stunning!
This underscores Mr. Roper's warning that those with equity in a property need to avoid foreclosure. Where there is no equity, these kinds of excessive costs actually simply serve to defraud the mortgage investor or junior lien holders, as was the case in this decision.