Pre-Foreclosure Notice for Sub-Prime Loans
The North Carolina legislature has enacted new legislation to help homeowners with subprime loans avoid foreclosure. If a homeowner with a subprime loan defaults on his loan, the lender is now required to send to the homeowner a Pre-Foreclosure Notice at least 45 days prior to filing the Notice of Foreclosure Hearing. The Pre-Foreclosure Notice must include an itemization of all past due amounts and other charges that need to be paid in order to bring the loan current as well as a statement that the homeowner may have options available other than foreclosure. In addition, the Notice must also include contact information for the lender, the North Carolina Office of Commissioner of Banks and other HUD approved foreclosure counseling agencies.
The goal is to give homeowners who have fallen behind on their mortgage before the notice of their home is actually in foreclosure that they may be facing foreclosure in the near future and there are options available that can help them save their home and / or their credit score.
