Myriad of Proposed Laws Aim to Stop Foreclosure in North Carolina!
With a record number of families facing foreclosure on homes in North Carolina, local legislators and consumer protection groups are trying to stop foreclosure via various proposed foreclosure laws that would deter shady mortgage-lending practices and do much more.
A recent story in The Charlotte Observer detailed how the Administrative Office of the Courts in Raleigh reported that more than 45,500 North Carolina foreclosure filings were reported last year. The story added that roughly half of those homeowners facing foreclosure in North Carolina are going to lose their homes.
With such figures in mind, local officials have proposed various foreclosure laws in North Carolina to meet this current problem in the state:
- One proposed North Carolina foreclosure law would prevent subprime loan originators from selling risky loans that can not be reasonably paid back. In the past, subprime loans have been given to people with a less-than-stellar credit history and other red flags. While getting people in on home ownership at low interest rates, these subprime loans have ultimately caused foreclosure in North Carolina and other states after those interest rates were jacked up at certain periods of the loan. The Center for Responsible Lending in Durham has estimated that more than 2.2 million Americans who got subprime loans in the past will not be able to stop foreclosure in the future!
- Another proposed foreclosure law in North Carolina would help those people who have been threatened with illegal foreclosure actions stop foreclosure and keep their homes. Representative Dan Blue said in the story that people are starting to realize how prevalent foreclosure in North Carolina is and are thus trying to stop foreclosure.
- Another proposed NC foreclosure law would endorse a home protection act designed to help homeowners stop foreclosure in North Carolina after facing such a threat. Specifically, this proposal would protect homeowners from abusive loan servicing practices, including misapplied payments and illegal fees. The story added that this proposed law to stop foreclosure in North Carolina would also require loan services to provide more accurate and in-depth information about their loans.
- The Residential Mortgage Fraud Act would make it a felony to lie on mortgage loan applications. The story detailed that it's currently very difficult to convict people of mortgage fraud in North Carolina because of the state's broader fraud laws. This proposed law to stop foreclosure in North Carolina has already been passed in the state House by a unanimous vote.
- Yet another proposal addressing the question of how to stop foreclosure in North Carolina would require the name of the mortgage broker or other loan originator to appear on public documents filed at county Register of Deeds offices. The Charlotte Observer story said that it's also currently difficult to identify mortgage brokers who initiate high-interest loans that end in foreclosure in North Carolina.
- Last but certainly not least of these proposed North Carolina foreclosure laws, one measure would take a closer look at subprime loans and lenders. Specifically, this enhanced regulation would require mortgage lenders to verify borrowers' incomes and credit records, and also create standards for how much a prospective homeowner can safely borrow.
Frequently visit Foreclosure-Fighter for the latest updates on these proposed North Carolina foreclosure laws.
Need to Stop Foreclosure in North Carolina or Somewhere Else? What to do Next!
If you're facing foreclosure in North Carolina or other U.S. cities like Fort Lauderdale, Detroit, Dallas-Fort Worth, Indianapolis, Atlanta, Las Vegas or somewhere else, get in touch with a local attorney as soon as possible.
An experienced attorney in your area can assess your current financial situation and help you determine if refinancing, debt workout plans, Chapter 13 bankruptcy or other foreclosure options may help you stop foreclosure and keep your home. Simply fill out the simple form on this page to get started.