State News

Mortgage help coming to struggling N.C. homeowners

Posted July 17, 2008

— Subprime mortgage holders at risk of losing their homes should soon have an ally in the North Carolina banking commissioner.

Lawmakers voted Thursday to create an emergency program designed to reduce the 60,000 foreclosure proceedings projected to begin this year in North Carolina.

The bill is headed to Gov. Mike Easley after the House unanimously approved minor changes to a version passed in the Senate. Easley has endorsed the idea and is expected to sign it into law. The program should be running by November.

The program requires lenders to give homeowners 45 days notice before starting foreclosure proceedings. The banking commissioner will examine the loan's terms and try to work out a deal to save the home.

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  • duster 340 Jul 18, 2008

    If you lost/losing your house because the payment went up on your ARM, I have no pity for you (unless you lost your job, in which case, I do have some measure of pity). Get smart before you buy, and try living within your means. And please sell your boat and your 4 wheel drive truck and what about that new bike you had to have !

  • OpinionatedGuy Jul 17, 2008

    OK...

    Compassion = Don't be such a pompous donkey
    (I am sure you are rich beyond my wildest dreams)

    Don’t think that history won’t repeat itself… While you can afford gas for your SUV, others may have not had it as easy… What I am really trying to say is that not everyone who is having or going to be having problems (because this article clearly states that nothing will be in place until November at the earliest).

    Our government sees the problems coming down the road and is fearful of an American disaster of our own making?

    Charlie… I try to look at both sides of an issue and believe that most people are good and have good intentions. I do not believe that all of these people are dead beats, as you insinuate.

    Enough Said…

  • wcnc Jul 17, 2008

    "How about the people who bought within their means, lost their jobs, can't sell because of deflated prices, or maybe they did get overextended trying to make it through and now they're stuck"

    I'd say these are few and far between. These are not the people whose sob stories are being told in the news. The only way this person is affected by the RE market is if they are selling. Whenever you buy RE, you take a RISK that the price will go down, no matter what people tell you!! Why do people always believe the people who are there MAKING MONEY OFF OF THEM??!!! Have some discernment, people, the Realtors and Mortgage Lenders are not your friends and they are not looking out for you- they are in BUSINESS to make MONEY!!

  • conniebritt Jul 17, 2008

    Charles,
    We did the same as your family; but;Husband's company closed down, construction, without notice, one month pay. Hard time finding other employment due to construction down turn. Injured knee on brace till surgery 3 months later. Six weeks out of surgery got any job he could. Did not pay like the Project mgt job. Fell, torn all ligaments in ankle, in brace for 1 1/2 month. Back to work now. We are 1 month behind on mortgage. We need help yes.
    In the last 13 1/2 months we spent all the savings; disability insurance pay we got (thank God for that); food banks any thing possible.
    lost car; enjoy that bank for a while will ya; they want us to foreclose get an apt and pay them off. Ha!
    We are so lucky to be only one month behind. I would have surly thought it would have been more than that.
    Do we need someone to look at our situation yes and hopefully we will be able to push one month to the end of the loan. The mortgage company is not interested in that option.good people

  • Worland Jul 17, 2008

    Since oil dropped another $5.30 today (about $16 drop since GW made his speech), maybe things will start to look up. I anticipated the drop last week, adjusted my holdings, and have been making out like a bandit in the stock market.

    I predicted August/Sep gasoline futures (wholesale) would be under $3 by COB Friday. Only 12 cents more to go! Too bad we won't see any relief at the pump for another 4-5 weeks.

  • Worland Jul 17, 2008

    If you lost/losing your house because the payment went up on your ARM, I have no pity for you (unless you lost your job, in which case, I do have some measure of pity). Get smart before you buy, and try living within your means.

  • wildervb Jul 17, 2008

    Many of the people going into foreclosure are responsible citizens who just happened to caught in the current real-estate down turn. Let's face it, there was a huge real estate bubble with greatly inflated home values. This bubble was fed by the Federal Reserve, Builders, Banks, realitors and speculators. If you happened to be the typical home buyer and you wanted to buy a house you had not choice but to pay the bubble price. (After all you were re-assured by the builder, lender and realitor that prices would only continue to go up). Now if your forced to sell because of job change or marital change etc, you're underwater in your house and your only logical choice is to default on the loan.

    I'm generally not in favor of bailouts, I believe in the free-market. But if too many people are forced into foreclosures, we'll have bank failures which will force the Fed to use tax dollars to bailout the banks, lending will get tighter, prices will fall all leading to Depression.

  • simracer68 Jul 17, 2008

    "Hey Charlie... I do not agree... Sometimes people buy homes and get suckered into believing that the mortgage holder is looking out for them, not to mention unfair and deceptive trade practices"

    The "loan practices" are not the primary issue. People buying MORE house than they could afford and or cashing out 110% of their equity to by 60" flat screen TVs and install in-ground pools (etc) is at the root of most of the current foreclosure issues. I know, I am an NC RE appraiser and see them up close and personal every day.

    But unfair lenders did not help matters, to an extent I agree there. I lost a lot of business over the past 5-7 years because I wouldn't "push the value" a little bit on home values and lost business to appraisers who would.

    But when it comes to unfair loan practices, ALL THE DETAILS are in the paperwork. If the buyers or refinancers can't figure out what they're reading/signing, they don't need to be buying a home: it's called personal responsibility.

  • colliedave Jul 17, 2008

    but these defaults on home and car purchases are just getting ridiculous.. The lenders should be stripped of all profit, and that interest profit should be applied to the loan. Especially where an application should never have been accepted.

    OK, Comrade Marx. And what would you do if the one turned down for the one screams "Racial discrimination!"

  • colliedave Jul 17, 2008

    How many of those lawmakers wanting to help forestall foreclosures are also in favor of expanding our oil supply? These individuals care not on whit about private enterprise but expanding governemtal control.

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