North Carolina Foreclosure Victims Hungry for Details of Obama Rescue Plan
August 4th, 2009
President Barack Obama outlined a programme involving $75 billion to contain the rising tide of foreclosures. But even before the President’s speech came to an end, North Carolina foreclosure victims were hungry for details and rushed to the housing counseling agencies.
Rebekh O’ Connell is a consumer credit and housing adviser and operates a non-profit organization – Triangle Family Services. He said there are many in this state that have gone underwater with the value of their houses being less than the loan amount. O’Connell wants the affected people to get the message that the plan is really going to help and that it will come in fast.
Compared to other parts of America, North Carolina’s foreclosure numbers are relatively better. It is the lowest in the southeastern region of the country. However it cannot be ignored that from 2008 there have been 54,000 foreclosure postings.
The devastating impact of foreclosures has been felt not only by the individual borrowers but also by the society and economy in general. Foreclosures are primarily blamed for the economic and social slump.
In January this year the foreclosure figures in North Carolina were down by 59% from January 2008 according to the Administrative Office of the Courts. This is mainly because of the moratoriums placed on foreclosures by the big lenders. They are anxiously awaiting federal plans to resolve the housing crisis. The cooperation of the lenders however would be essential to modify the loans. So far this has been difficult to get.
The new Obama plan offers incentives to the lenders so that they bestir themselves to help the borrowers. It aims to bring down the mortgage payment to 31% of the income of the borrower. If the lender brings down the rate of interest and supposedly loses $400 per month the federal government would give half of that loss. By this way the lender would avoid taking the costly path of foreclosure. It is the first time incentives have been offered by the government to the lenders to enable them to reduce the rate of interest. Mark Pearce, the deputy banking commissioner of North Carolina said, “It’s certainly a big step forward. The government is essentially saying we’ll share some of the pain to encourage you to make sensible modifications to keep people in their houses.” He further explained that reduction of interest rate is different from loan modification.
- Ohio Is Also Scrambling to Get On to the Foreclosure Rescue Lifeboat
- The foreclosure crisis has led to the Museum of American Finance face an awkward situation
- Non-profit Organizations Spreading Across America to Help Foreclosure Victims
- Problems and Solutions for Underwater Foreclosure Victims
- More Help Is Coming for Foreclosure Victims from the Treasury
- Foreclosure Victims Are Taking Lenders to Courts
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