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North Carolina Foreclosures Drop, Thanks to New Law

By jason | October 30, 2008

When the foreclosure figures for September came, many local officials were relieved to see their efforts paying off. Among their efforts to curb foreclosure include the approval of a state law that requires lenders to give distressed homeowners 45 days notice before any default notices can be filed.

As a result, foreclosures for the month of September dropped by almost 27 percent from last year and 46.15 percent from last August. Notices of default declined by 66 percent, which generally fueled the decline.

At present, North Carolina’s foreclosure rate is one foreclosure filing for every 1,627 homes. On the other hand, the number of homes entering some stage of foreclosure for the said month reached 2,477. The state ranked 35th among the states with the highest foreclosure rate.

North Carolina actually joins other states in terms of the passing of new laws that will give homeowners more time to work out their mortgage problems with their lenders and hopefully avoid foreclosure.

For most experts, it is crucial that lenders and borrowers work together in order to stop the foreclosure crisis from further worsening. Nationwide, foreclosure rate has risen by 21 percent compared to last year of the same period. This clearly shows that national and local efforts have helped very little and more efforts are needed.

For troubled borrowers, this extra time should provide them extra leg room so they could explore all possible options to avoid foreclosure. If a loan modification, refinancing or repayment agreement is not possible, there is always the option to enter a short sale transaction or even a deed in lieu of foreclosure. Worse comes to worst, a distressed homeowner can always consider filing for bankruptcy.

Before making any decision, troubled borrowers should have all the necessary information needed. It is vital that the consequences of their actions are understood and they know how their decision would affect their financial life. To be sure, there are foreclosure counselors that distressed homeowners can talk to.

Related Posts:

• Drop in Home Mortgage Rates Expected to Abate Foreclosures
• Declining Default Notices in California Gives Hope to Locals
• Enhanced Foreclosure Help Program Takes Effect in California
• Foreclosure Crisis and the Possibility of a Recession
• Michigan Enacts New Anti-Foreclosure Bill

Topics: Foreclosures by State | Comments Off

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