A new law in North Carolina, known as The Consumer Economic Protection Act, will help delay and ideally stop a foreclosure. The new law allows a clerk of court to delay the foreclosure process for up to 60 days as needed. The delay of the foreclosure hearing will provide the homeowner more time to work out a payment plan with the bank, mortgage servicer, or lender. The ultimate goal of the program is to allow the homeowner to stay in the home.
In a statement issued by North Carolina governor Perdue, she said that “When a home is foreclosed in North Carolina, it's bad for our communities, it's bad for our families, it is also bad for our businesses and it's of course it is bad for the state of North Carolina. This law will make it easier for homeowners in the state to agree to and work out a new deal or payment plan with their lenders and avoid foreclosure.
In addition, the law gives homeowners more of a greater ability to appeal foreclosure orders by standardizing the amount of bond requirement that is required at 1% of the balance due on the loan. Compare that to before this new law was signed, when some homeowners had been asked to put up a bond worth the entire value of the loan balance on their home before the appeal process.
In addition, the state law empowers the Clerk of Court that is presiding over the foreclosure hearing and process to ask what steps have been taken to prevent the foreclosure and to also continue the hearing for up to 60 days to allow homeowners and lenders more time to mediate or negotiate a long term solution that is agreeable to both parties. Learn more on foreclosure mediation.
If you are facing a foreclosure, contact the NC court that is named in the foreclosure notice that you will receive. Ask them to enforce the The Consumer Economic Protection Act. This will provide you additional time, and then be sure to contact your lender during this timeframe to discuss options and mediate a solution.
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