New North Carolina Law Allows Extension Of FC Hearings

North Carolina Gov. Bev Perdue has signed the Consumer Economic Protection Act of 2008, which allows the clerk of court presiding over a foreclosure hearing to continue the hearing for up to 60 days to allow homeowners and lenders more time to negotiate a solution.

‘This bill makes it easier for homeowners to work out a deal with their lenders and avoid foreclosure,’ Perdue says.

The bill also standardizes the amount of bond required at 1% of the balance due on the loan. Previously, some homeowners were asked to put up a bond worth the entire value of the loan balance in order to be able to appeal their foreclosure.

The bill additionally protects North Carolina consumers from unfair debt collection practices by debt buyers, Perdue's office says. Debt buyers must now prove that they have the right to enforce the debt and be able to verify the amount owed. The new law also prohibits debt buyers from filing or threatening to file suit when barred by the statute of limitations.

SOURCE: Office of North Carolina Gov. Bev Perdue

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