NC is non-judicial foreclosure. (ie quick)
After the 45 day mandated letter (NOD) they will file at the courthouse (where property is located). Another section of law says this notice must include alternatives to foreclosure 30 days before filing. If they didn't then you have something in your defense. From there they will schedule a hearing with 10 days notice. This is the actual foreclosure. They can also do the "hearing notice" by posting it for 20 days locally in a newspaper or such (saying you are unreached or sending notice to property address which you don't get or is returned cause you moved or something), which means you may not know if you don't get served. You will very likely lose that hearing, but you could also request additional time if you can show good cause, such as trying to settle. Hearings can be done on zoom or by teleconference during COVID. Its actually easier for you since you may be in Florida. Then 45 days to sale date. Given that this property is not owner-occupied, these proceedings may proceed quickly even in spite of COVID. (Your tenants are protected, plus they have a lease. I would avoid involving them or disclosing such as you don't want to disrupt income on the property and scare them off when you may be able to settle.)
If you delay this too long without a resolution, the property is likely going back to the lender as REO in a full bid at the foreclosure. You will have a foreclosure judgement on your record. If you have not already BK'd this mortgage, then you will owe a deficiency. This deficiency is going to be their costs and fees and all the legal wrangling they have to do to make arrangements, get approval, from the first lienholder. I'm sure they have the numbers on how much equity you have left and SLS is a grunge debt collector who may see you as a good way to infuse some cash into their operations.
You are better off attempting to negotiate and pay off. Taking any discount you get is better than having to pay an extra 2500- 6000 in legal costs tacked on top of the 72K. Write them a letter and offer settlement and include a legal request to pursue foreclosure alternatives for 60 days. Ask them to accept proposal in 10 days. Let them counter. Tell them, upon acceptance they will receive payment in 30 days (or something pre-determined). Hopefully this will delay the legal filing in order to attempt a cure or reduced payoff. How long does it take to cash-in a 401K? FYI don't disclose that, just keep in mind. Do you really want a foreclosure on your credit? It could hurt you. Even if it doesn't affect your job, you may get increased rates on credit cards, car loans, etc. If it doesn't hurt you, then if the lender subsequently buys it, you can outbid lender by 1k if you top their offer within 10 days of sale. You can also pay up (reinstate by paying past due or payoff in full) so many days before the sale.
Alternatively, this could be a bluff. They may have a known difficulty getting a sale date on an occupied property (moratoriums and what not) and/or difficulty in getting First lien holder to allow it. You never know. You could possibly get a deferral on payments during COVID and stall a bit by filing the requests.
Here are basics of North Carolina foreclosure:
Learn how foreclosures work in North Carolina. Find out what happens when you miss a mortgage payment, when foreclosure starts, & if you can redeem your NC home.
www.alllaw.com
Learn how the North Carolina foreclosure process works, including preforeclosure steps, foreclosure procedures, and homeowner rights .
www.nolo.com