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Consumer Economic Protection Act signed

READ MORE: Consumer Economic Protection Act signed
Governor Perdue signed the Consumer Economic Protection Act into law Wednesday. It will extend the time homeowners have to work with lenders before a foreclosure hearing. "Most importantly on behalf of all the homeowners who are going to be safe, better taken care of because of this groundbreaking legislation,” Perdue said. And with that, Governor Bev Perdue signed the Consumer Economic Protection Act into law. It gives Clerks of Court the power to continue a foreclosure hearing up to sixty days, thus giving homeowners more time to negotiate with lenders. "What's happened in the past, is by the time the lenders finally got to the paperwork and were finally ready to work something out, the sale date's a week away,” said Brian Edwards of Trademark Investments. Edwards works with homeowners facing foreclosure, and says with all the backlogged paperwork, this law will be a big help. “Everyone feels like their head is being held under water with this economy and they don't know what to do and this gives everyone a breath to step back and see what's going on and gives them the time they need to work something out with their lender." The law also allows homeowners to put up less money to file an appeal of a foreclosure order and establishes new rules to protect people from unfair debt collection by debt buyers. When it comes to buying more time before a foreclosure hearing, Edwards says the consumer economic protection act is key. "Good, honest, hardworking families are in situations that they've never experienced before and if you don't know what to do when you're in foreclosure, it takes you a month or two to figure out what you need to do and what your options are." The hope is the new grace period will allow homeowners to work out the best deal possible. It's estimated more than two million North Carolinians will see their property values drop over the next three years because of foreclosures in their neighborhoods. Governor Perdue and Attorney General Roy Cooper hope this new law will help out everyone affected by foreclosures.

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Do you ever blame yourselves?

Sure the homeowners market has turned into a complete fiasco. All of you have to remember that the MAIN reason this has occurred was due to the deregulation of the mortgage industry lending requirements during the Clinton presidential era. His intent was to make home purchases more available to middle and lower income families. It is well noted that predatory lending occured, lack of employment and income data requirements, elevated appraisals and the whole scheme were contributory.....BUT, as buyers, all of you were provided with a mortgage contract and good faith estimates. All of the attributes related to your loan were there in pure black and white for you to read. You can't just go into a mortgage lenders office and sign off on every sheet they hand you with out reading AND understanding exactly what it represents up to and including the potential consequences when economic changes occur. I hate to see any of you lose your homes and would never wish anything bad on you, but you have to accept your own responsibility for signing the documents that bought you the house on the contractual terms you signed off on. The term, "Always read the fine print..." is an iconic term in America and has great meaning. A contract is a contract and you had better understand EVERYTHING you are signing off on. If not, get an attorney to interpret it for you. Ignorance is not an excuse.

ignorance is not an excuse

if there is predatory lending involved, how is that fair? why don't you address the predatory lending issue instead of harping on this "always read the fine print" it's your fault if you get screwed bunk. i bet you wouldn't be so conceded if you were a victim of predatory lending!

Banks do not work with those in default

I lost my job, I work the only job I can get which is part time, cash under the table. I went from making $70,000 a year to little over $20,000. My wife brings in $25,000, but now she is pregnant. My mortgage is at 12.6%, payments are $1,900. The last payment I made was in February. I have attempted to renegotiate my mortgage with the bank and I am told my income is too high. I can not refinance because I have no job. The bank would lose $60,000 if they foreclose and they will not negotiate. The only calls I get are from collections. I am "underwater" on this house. The appraisal has dropped nearly 20% off of what I paid for it a little over 2 years ago. I had a huge hospital bill left over from cancer treatment. If the bank would lower the interest rate to 6% my payments would be less than $800 on my three bedroom 2 bath house. I could make the payments and in a couple of years get my money out of the house. The bank wins too by saving $60,000 by not foreclosing. But they wont deal. In the meantime I am stuffing money away in order to move. Screw the bank if they wont deal. They borrow from the Fed at zero interest and expect me to pay nearly 50% of my income to satisfy a 12% mortgage. They can have it. Sixty additional days will allow me to find a nice house to rent. And for the mortgage broker that talked me into this loan, you're on the list this Halloween.

To Sub-Primer

I'm very sorry for the situation your in, thats a tough on. However, I might be able to help a little. The LAST thing you want to do is talk to collections people at your mortgage company. They are only paid if they collect money from you and will never renogiate. You need to contact the "Loss Mitigation Department" at the bank that holds your loan and they are the people that are able to renogiate. Be honest with them, tell them your situation and hopefully they can help. They are paid on how much money they save the company, not collect. When calling make sure you are talking to that department though, they are truly the only ones that can help. I'm a licensed Mortgage Banker and have taken several classes on this type of thing, and that is by far the best way out of your predicament. Hope that helps!

How is the bank only out

How is the bank only out 60,000? Is that all you owe? And if so, why are your payments so high? Did you finance it for like 3 years? I can get a 200,000 dollar house for that price per month, even at 9 or 10 percent interest.

Obvious question

How in the world did you wind up with a 12.6% loan on a house you purchased two years ago? Time of purchse v. rates - something isn't matching up.


percent...let me guess...ARM...if thats the case...ALL YOUR FAULT!

Bad Credit?

A 12.6% mortgage?? Where did you get your loan from? Lenny in the back alley? If the combined income you claim to have had of $95k and you couldn't get a lower rate you must have terrible credit. The rates have been low for years and while you were making $70k you didn't think to do a refi? Let me cry you a river.

Re-fi my eye

First of all I was a first time homebuyer, no real credit, I own my cars, no credit cards, etc etc. I had a strike against me for a $24,000 hospital and doctors bill. The broker that talked me into this loan said I could refi before the rates went up. He didnt tell me of the penalty that would have cost me $17,000 to do so. When everything started happening I called because I heard there were programs available to help people like me get modifications. I was told that I had to be 3 months behind before they would help. Prior to this I was NEVER late with any of my payments. 2 months into it the one credit card that I owned was canceled with a $50 balance. I never was late paying them, it was for emergencies only. So my credit was ruined trying to get my loan modified. WHICH BTW they say they do and don't. However look at the statistics, they modify only 6% and if you really look at these modifications they simply let you slide a couple of months, knocking a couple of hundred bucks off and tacking it onto the end. So if they arent doing what they agreed to do in order for them to receive the trillions in bailout why isnt anyone holding them accountable? It's fraud, they defrauded the taxpayers who funded their bonuses and corporate jets.

Foreclosure Notice

The bank sent a letter out today by their lawyers that said they are going to foreclose. Just got it this morning. I cant believe they never attempted to work with me first. Moral to the story, yes dont sign an adjustable rate mortgage (ARM), and if you have, and you lost your job and want to renegotiate your interest rate, DO NOT listen to them and let them tell you to fall behind in your mortgage. It will ruin your credit and you will be at their mercy. Sell your house immediately, try to find an investor that will rent it back to you. But if you are in a jam, before you fall behind, run up your credit cards with stuff you can resell, buy a new car, then go bankrupt. Play the system as it is going to play you. If you dont then youll get screwed. Your credit will be ruined for 10 years with foreclosure, 7 years with bankruptcy. You do the math. Move out, hand your keys to a homeless person with a letter giving them a year's lease for one dollar. The bank will usually have to buy them out of the lease. Usual settlement for a renter with a lease is $2,000. Some homeless people are deserving, at the worst the squatter will have a couple of months after it is sold on the courthouse steps before they can be legally evicted. it might just allow someone the time to get back on their feet. Im lucky, I got money to start over, just not money to pay 12% interest. that's robbery. My credit was shot anyway. So if you know someone deserving who is homeless and needs a place to stay..... If I didnt like my neighbors Id give it to a bunch of college kids to tear up.

Yeah....'s all clear now....

Thanks for clearing everything up. It's OBVIOUS who's to blame here....

Just WOW!

It's your kind of thinking that got you/us into this whole mess. You tried to "play the system" and lost so now you think it's ok to run up more debt for the rest of us to be responsible for!? I see more problems ahead for you unless you get your head out from where it currently is.... Just..... wow.......... **sigh**

Was this

law really necessary? Banks by nature do not wish to foreclose on properties. They take a hit against current earnings every time they foreclose. And contrary to public opinion, once the bank owns the property, it is considered a "dead" asset and can not be listed on their balance sheet to improve their financial picture for the regulators. Banks will bend over to avoid foreclosure. The challenge for them is the property owner who will not communicate. That is where the foreclosure process gains speed. When the borrower does not communicate with the bank. Notice I indicated Bank. Mortgage Companies and Private Lenders fall into another spectrum where they are concerned with cutting the loss quickly. They can still allow reasonable time for the borrower to "work things out". What is likely to happen? Mortgage lenders may come to view North Carolina as an unfriendly environment in which to make new loans as a result of this law. They now have to wait an additional 60 days beyond what is normally a 4 to 5 month time frame in order to take action. During that additional 60 days, interest on the note continues to accrue. That adds to the loss ultimately taken by the Bank or Lender. Those that think this will ease the mortgage foreclosure crisis are likely mistaken.

You don't pay-You don't stay!

New laws to protect homeowners that have WRONGED the bank?! Puh-leeze!! This is just another case of political hoop-lah-for-nothing-legislation. People don't "accidently" take out home mortgages and then "accidently" forget to pay. A better bill would be: If They Don't Pay, They Don't Stay!

a little sympathy, please

I hope if you ever lose your job, other people will show a little more sympathy and understanding. There is no "glory" in your cold attitude.


People like him (and many, many others) got this country where it is today. Too many people want to live above their means or for the moment. They don't think for a second about saving anything. My husband and I earn well over 100,000 together, but we have no car payments, a minimal house payment at a low interest rate, because our credit was good when we purchased our home and we put a nice down payment on it as well. To top it off, we have a nice sizeable savings that most people would kill for. But, we don't have live extravagantly. When we want something, we either pay cash for it, or we don't get it. Too many people have been living on credit cards and credit. It is past time for everyone to get back to the basics and look after yourself. No one is guaranteed anything.

agreed-to a point

MM, I agree with you, but GloryDaze's comment was very harsh. My husband and I make just under $100k together, have only one car pymt., and also were lucky enough to get a house with a reasonable rate and $$ down. We also have a child in college, which thank goodness, we began saving for when I got pregnant or we would be taking out loans for her. We live very frugally, no boat or big TVs; however, due to large unexpected medical bills last year, we have ZERO savings now. If my husband were to lose his job now we would be completely screwed through no fault of our own.

His point is valid

There is something very, very wrong when retention of your home is totally dependent upon the income from your current job. Fifty years ago people waited to buy their homes until they were on a firm, substantial financial footing. Today, many people cannot weather an even brief period of unemployment in their life without it turning into a major catastrophe. Far too many people fail to think and ask themselves, "Gee, what if..." before they make major financial commitments....and that played a leading role in the housing and mortgage collapse of the last two years.