Comparing the two foreclosures data from April and May, one can hope that the North Carolina foreclosures situation is leveling off. There was a slight increase in foreclosures rate between these two months, which resulted to the state holding on to the 19th position for highest foreclosures rate. Of course, comparing it to the same period last year, the 83.31 percent increase in foreclosure filings will crush all hopes.
According to the Association of Community Organization for Reform Now or ACORN, the situation in North Carolina may be considered as an epidemic caused predominantly by predatory lending practices that most aggressive lenders engaged in during the last housing boom. With thousands of North Carolina foreclosure properties in the market today, the group is worried that it could further drive down housing prices. If this happens, many property owners facing foreclosures will likely feel more cornered since they could not pay off their mortgage debts even if they sell their home.
ACORN also believes that the worse is yet to come. They are now urging mortgage companies to agree to a moratorium for these North Carolina foreclosure properties, especially those that came from the subprime market. Many of the lenders of these loans abused underwriting guidelines and approved loans without even checking whether the borrowers could really afford them given their credit history. In addition to this, they even enticed these borrowers to opt for adjustable rate mortgages.
After the interest rates reset on these loans, the ballooning mortgage dues were more than what these borrowers can handle. Luckily for some, they were able to bail out by selling their homes with the assistance of brokers like Foreclosure Listings Nationwide. Many owners, on the other hand, are still exploring other options to stop foreclosure including negotiating with their lenders for new payment arrangements.
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