Foreclosures For Sale, News, Articles And Foreclosure Information

Effective November 1, 2008, banks will be given 45 days to notify the commission before they start filing for foreclosures.

The law is aimed at stemming the rise of North Carolina foreclosures. It also gives borrowers more time and options to avoid losing their homes.

Deputy Commissioner of North Carolina banks, Mark Pearce explained that the law will give ample time for the commission to contact people who are having difficulties paying their mortgages.

He said that contacting and helping homeowners who are facing the threat of foreclosure will require more effort from the government and banks.

Last October, about 5,000 pending notices were received by the commission. It sent letters to those homeowners who filed and urged them to keep their homes.

The commission has provided homeowners with resources and counselors who can assist in renegotiating rates to enable them to meet their payment obligations and avoid losing their homes.

According to banking officials, they had already helped over 200 homeowners in 2008. The banks make the final decision that will determine if homeowners can keep their properties or not. This goes to show that banks play a major role in the campaign to alleviate North Carolina foreclosures.

Gran Yarber, chief executive officer and president of Capital Bank based in Raleigh, explained that community banks find it easy to negotiate with mortgage holders. He said that most community banks are committed to helping homeowners keep their homes.

Meanwhile, bigger banks are being pressured to adopt a more flexible approach when it comes to negotiating with homeowners.

Yarber believes that big banks will find it difficult to be more flexible in negotiating with homeowners because they transact in large volumes. He said that changing their negotiating strategy would be a challenge for big banks.

Meanwhile, Pearce has urged lenders to exert more efforts to help homeowners who are facing foreclosures.