Relief for Home Owners in North Carolina

October 9th, 2008 by Autor

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Home owners involved in Raleigh foreclosure homes are set to see some relief coming their way, as will home owners in other parts of the state. On 08/18/2008, a legislation was signed into law by Governor Mike Easley, which is to address the exorbitant number of foreclosures involving mortgages in North Carolina. With the passing of the new bill, additional notice will be required before foreclosing on homes, rate spread premiums are to end, and all mortgage providers will now need to be a part of state records.

Speaking to the media, Governor Easley said of the program that it was the first one of its kind across the country, and would ensure that lenders and homeowners alike avoid foreclosures. He said that the aim was to get borrowers together with lenders so that families could hang on to their houses, and lenders could avoid facing losses by foreclosing on homes.

The Emergency Foreclosure Reduction Program launched by the Governor will need the lenders to give the State Banking Commission and home owners notice 45 days before beginning foreclosure proceedings.

The Governor’s office said that, during that period, staff from the banking commission will work alongside the lender and the home owner in coming up with interest rates that would be acceptable to both, the borrower and the lender.

The Governor’s office also said that the law has also given the Bank Commissioner the authority to lengthen the notice for foreclosure filing by thirty days, giving the state time to work with mortgage holders and home owners to reach a common ground when it comes to payments and interest rates. Other provisions that the bill includes is the formation of the North Carolina Foreclosure Prevention Project. July 1, 2008 and November 1, 2008 were set as the two dates for the parts of the Law to come into effect.

The House Bill 2188, the governor’s office said, is to amend and clarify the bills that were passed in 2007, eliminating rate spread premiums. This will come into effect on 1 October, 2008.

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