Archive for the 'North Carolina' Category

The predicted number of foreclosure homes for sale across North Carolina for the year 2009 is 46,600 units, based on projections made by the Center for Responsible Lending.

Now, based on the current pace of foreclosure filings, North Carolina may reach and even surpass the center’s foreclosure projections. The Administrative Office of the Courts said that about 33,350 foreclosure cases were filed in court in the first half of this year. In 2008, total foreclosure filings in North Carolina reached nearly 54,000, marking annual increases in foreclosures since 2005.

In Alamance County, approximately 503 foreclosure cases were filed in the same 6-month period. Hunt Johnson, clerk of court of the Alamance County Superior Court, said that most foreclosure filings go on to foreclosure sales. He added he is surprised at the relatively high number of foreclosures in the county. He said the court has held 554 foreclosure hearings since he took over as clerk of court.

Johnson explained that his responsibility was to determine if the foreclosure filings meet all foreclosure law requirements. He evaluates bank notices, deeds of trust and other documents. At the hearing, he decides whether the foreclosure sale will proceed.

In addition, Johnson also explained that most foreclosure filings go on to foreclosure sales if the defaulting homeowners do not show up during the hearing. He has observed that most foreclosure cases filed for underwater mortgages are no longer challenged by the homeowners.

Jeffrey Bunda, a lawyer for Charlotte-based law firm Shapiro and Ingle LLP, said lenders now are more willing to work defaulting loans with homeowners. He said he has acted as substitute trustee in foreclosure cases for many years. He added that banks have too many foreclosure properties so they want to take the risk of working out loan modifications.

In November last year, North Carolina established the State Home Foreclosure Prevention Project, which delayed foreclosure filings for cases determined by the Commissioners of Banks as workable under the federal foreclosure program. The project also required banks or mortgage servicers to notify the state before foreclosing on delinquent subprime loans.

Based on data from the office of the governor, over 1,000 foreclosures have been prevented under the program since June and more than 3,000 homeowners were helped through foreclosure prevention and financial management counseling. The project has been estimated by state officials as giving a positive impact valued at $86 million on the state economy.

When Governor-elect Beverly Perdue takes office in North Carolina, she will find the budget balanced, thanks to the efforts of outgoing Governor Mike Easley. After a year of receiving bad publicity, including overseas trips with his wife using taxpayers’ money, Governor Easley is trying to regain his reputation through his proactive actions in dealing with reduced budgets and the worsening issues on North Carolina foreclosures.

The number of foreclosed properties increased in North Carolina by 9 percent in 2007 amounting to 49,700 homes. This is further aggravated by the current recession hitting the country, which also raised the unemployment rate to the highest in six years. State court records are showing that North Carolina foreclosures last October has already exceeded last year’s figures, and since that month a total of 7,500 notices of foreclosures have already been filed.

North Carolina has always been lower than most states in terms of foreclosures and this can be attributed to the legislation against predatory lending which Easley, an attorney general at that time, helped established which restricted subprime loans and was benchmarked as a national model for lending laws.

This made Governor Easley the ideal candidate to talk about the mortgage foreclosures reduction program during an economic stimulus package attended by various governors as well as President-elect Barack Obama. He also discussed the same refinancing plan with other attorney generals from various states in the country.

The program has already helped thousands of troubled homeowners with subprime loans from losing their homes to foreclosures. Through this program, participants were able to restructure their loans to lower interest rates or through an extension of the loan term. The program also requires mortgage servicers to alert homeowners 45 days before a notice is filed on foreclosure.

At the same time, the banking commissioner should also be informed who can order an additional delay of 30 days to allow review of the loan terms for possible restructuring. The National Governors Association has announced that they plan to use Easley’s program as a national model.