A proposal in the North Carolina legislature would extend the life of a foreclosure prevention program, and expand it to all borrowers at risk of losing their homes.
The Senate Finance Committee on Wednesday recommended a bill that would extend the program's life from October to May 2013, when lawmakers believe the worst will be over.
Mortgage servicers have been required since 2008 to warn homeowners with subprime loans 45 days before pursuing a foreclosure in court. The state banking commissioner is also notified and that office encourages homeowners to get help from a non-profit housing counselor.
The bill would assess mortgage servicers a $75 fee that the banking commissioner could use to support counseling and non-profit legal services.
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