Below is an excerpt from the article, “NC Foreclosure Regulation Papered Over” for the Charlotte Business Journal by Adam O’Daniel:
An N.C. law designed to help homeowners who are facing foreclosure lacks teeth, transparency and oversight.
And the only agency responsible for carrying out the law finds itself awash in a sea of foreclosure cases as it enlists receptionists and other clerks to help process filings in Mecklenburg County.
But state regulators defend the process, saying they’ve put numerous programs in place to help owners save their homes.
North Carolina lawmakers in 2009 passed the Consumer Economic Protection Act, which placed new stipulations on banks that seek to foreclose on owner-occupied homes. The law asks lenders to make good-faith efforts to modify the terms of a borrower’s mortgage before foreclosure if a “reasonable likelihood” exists that more time or negotiations will resolve the problems.
But there exists no formal checklist to determine whether a lender has done enough to modify a mortgage before foreclosure. And the public can’t track which lenders cooperate and which ones fall short because no standard documentation of the modification efforts is required.
Instead, judgment falls on the shoulders of the overburdened clerk of court’s office in each county. In North Carolina, clerks of court preside over foreclosure hearings. And officials say the law requires the clerk handling a foreclosure case to ensure efforts were made to modify the loan, if possible.
And if the bank fails to try to modify a loan before bringing it to foreclosure? The clerk can postpone the hearing for 60 days and instruct the lender to try again.
Read more: N.C. foreclosure regulation papered over | Charlotte Business Journal
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