In an effort to reduce the number of foreclosure filings in the state, North Carolina Governor Mike Easley signed into law three bills that will give homeowners a chance to win their struggles with foreclosure.
The first bill established the North Carolina Foreclosure Prevention Project, a program under which homeowners as well as the bank commissioner of the state will enjoy a 45-day notice before the foreclosure filing. In addition, the bank commissioner can extend the said notice by another 30 days if the case warrants.
During such time, the state will assist in the negotiations between the lender and the homeowner until a new payment arrangement and mortgage interest rate have been established. The said legislation will be able to provide help to over 25,000 homeowners.
The other bill tackled the issue of yield spread premiums, which it permanently eliminates after critics considered it as an incentive for mortgage brokers to charge borrowers with higher fees. The last bill requires all loan servicers in the state to register and submit reports to the bank commissioner.
All these new legislation will certainly help fight the spreading problems brought about by the foreclosure crisis. Considering that one of the reasons for the present mortgage mess in predatory lending practices, it will help that loan servicers are being monitored and regulated. Aside from this, many homeowners will benefit from the assistance since majority of them are not aware of the foreclosure process and can not make informed decisions because of this.
With the North Carolina state government extending its hand to these struggling homeowners, many families will be able to stay in their homes.
Across the nation, similar bills are being proposed and signed into law even after the federal government has passed legislation last month that will provide mortgage relief to as many as 500,000 homeowners.
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- Is the Foreclosures Situation in North Carolina Stabilizing?
- Housing Rescue Legislation: Are You Qualified?
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