New Law to Help Servicemen Facing North Carolina Foreclosures

by on States

The state legislature has recently approved a bill designed to provide more protection to military personnel who are facing potential North Carolina foreclosures. Governor Bev Perdue must sign the bill first for it to become a law. Insiders at the governor's office have hinted that Perdue is likely to approve the bill.

With a lot of serving military men and women losing their homes to bank owned foreclosures while they are in overseas duties, the new regulation is being seen as a great help to these military people. However, the bill's provisions did set a limit as to who qualifies. Under the proposed regulation, only those who incurred the mortgage debt prior to getting into active duty will be considered for aid.

In short, the bill does not apply to those who acquired their mortgages right after they went to active duty. Despite this provision, the regulation is expected to provide great help to military personnel who have not been spared by the various foreclosure problems, including government foreclosures, Wachovia real estate foreclosures and other bank foreclosures.

The legislation, should the governor's office approve it, will put North Carolina foreclosures law in parallel with federal regulations. Although the proposed regulation will not prevent lenders from foreclosing on military personnel properties, it will help slow the process which could give the owner more time to find ways to solve the problem. The bill was sponsored by Senator Don Davis.

Some sources from the state legislature have admitted that the real estate home foreclosures bill can still be expanded to include those properties whose mortgages were acquired after the owner went into active duty. But for now, the bill focuses on giving military property owners more time to pay their mortgages.

The new regulation will require a soldier's property under foreclosure to be handled by a judge, which entails a longer process than a foreclosure put in front of a court clerk. In addition, soldiers can appeal a court clerk's sale order under the Servicemembers Civil Relief Act.

Governor Perdue has been given until August 9 to approve or reject the bill. Most real estate market observers believe that the governor will approve the bill which will provide more protection to military personnel facing North Carolina foreclosures.