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Posted on September 6, 2007 by tireddadoffive | Posted under Mortgages
North Carolina Lawmakers Have Entered The Foreclosure Fray In A Big Way
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In a direct response to the current sub-prime crisis, the state government passed a law early in August 2007 bringing into affect the North Carolina Home Loan Protection Act. The focal point of this legislation is to offer protection against predatory lenders. Lawmakers are calling for lenders to verify the borrower's ability to repay the loan while taking into consideration any future interest rate increases. In essence North Carolina is forcing lenders to return to more traditional and sensible lending practices. There are some important key provisions in the new law bringing it more in line with the federal definition of a "protected mortgage". - Better documenting of income. This has been a standard practice in mortgage lending for decades and North Carolina is demanding mortgage brokers comply. - Pre-payment penalties have been banned. - Broker compensation must be taken into consideration when calculating the cost of the loan. - Borrowers have a legal remedy for protection if violations occur. This is not the first time North Carolina lawmakers have acted on the behalf of the state residents to enact protective measures against predatory lending practices. In fact, the state is only one of handful to address the current ability to pay issue. Even with the state's added protection a homeowner in default and trying to stop foreclosure in North Carolina should have a basic understanding of the foreclosure laws. North Carolina uses the non-judicial foreclosure process primarily, but provides for a judicial foreclosure process as well. It usually takes between 90- 120 days to complete a non-judicial foreclosure depending on the timing of various notices. Since the courts are typically not involved the notice requirements are very stringent. Any legal documents are required to contain the power of sale language in order to use this type of foreclosure method. North Carolina foreclosure law allows a homeowner the right to redeem his or her foreclosed property by paying the amount, for which the property was sold, plus interest and administrative costs. If a judicial foreclosure is used, the borrower has one after the foreclosure sale to redeem the property. North Carolina continues to set the standard for other state to follow by enacting timely protective measures against questionable lending practices. Homeowners are offered more protection here than in most other states, and for a North Carolina homeowner trying to keep their home and avoid foreclosure it's good to know there is help available at the highest state levels. About The Author: SaveMeFromForeclosure.com is a leader in the foreclosure prevention industry. We offer solid information, consultation, and strategies to assist the homeowner in stopping North Carolina foreclosure. We offer tailor-made options and suggestions based on your unique situation. Get onboard today with right company to help you avoid North Carolina home foreclosure. Visit our website or call us at 1-888-472-8380 for a no-obligation consultation. |
Tags: NORTH CAROLINA, FORECLOSURE, STOP, AVOID, REAL ESTATE, NEWS
