State News

State officials propose steps to stop foreclosure

THE ASSOCIATED PRESS

Published: November 4, 2009

RALEIGH
North Carolina officials have proposed several new regulations that would help families struggling to keep their homes.

The News & Observer of Raleigh reported Wednesday that a proposal announced by the N.C. Office of the Commissioner of Banks would halt foreclosures once homeowners request a loan modification.

Now, lenders simultaneously pursue foreclosure while working with homeowners seeking to modify loan terms.

Another change proposed Tuesday would require the mortgage servicer to respond promptly to homeowners when they ask for assistance.

The rules would only apply to mortgage brokers and other lenders that aren't banks or savings and loans and would not be implemented before April 1 if they approved. A public hearing is set for Dec. 8.