Contact
P.O. BOX 6323 • HIGH POINT, NORTH CAROLINA 27262 • 336-688-5329 • FAX: 888-474-7198
www.ncequalaccesstojustice.org
Jennifer M. Lechner, Executive Director
NORTH CAROLINA EQUAL ACCESS TO JUSTICE COMMISSION
P.O. BOX 6323
HIGH POINT, NORTH CAROLINA 27262
lechner@ncequalaccesstojustice.org
336.688.5329
FAX: 888.474.7198
www.ncequalaccesstojustice.org
THE COMMISSION DOES NOT MAKE LEGAL REFERRALS NOR PROVIDE LEGAL ADVICE.
A woman came to the Legal Aid of North Carolina (LANC) office in Durham with a pending foreclosure on her home. She and her family were two months behind on their mortgage payments. Documented immigrants, she and her husband were both hard-working, but they found their incomes substantially reduced as a result of the housing/construction bust. Although the family tried hard to make ends meet, the turndown in the overall economy had greatly reduced their earning capacity and their opportunities to save.
LANC notified the loan servicer of our intent to seek legal documents to prevent the foreclosure. Further, Legal Aid staff developed a plan to delay the foreclosure and seek modification of the loan, when it was discovered that this family qualified for a substantial reduction in their interest rate and a reasonable amortization period. The loan servicer, realizing that LANC attorneys were not going to let this foreclosure proceed easily, decided to dismiss it. Due to the client’s rapport with the Legal Aid staff, they continued to handle the matter and help her pursue her loan modification, rather than refer her to an outside housing counselor.
Over 44,000 foreclosures were filed in North Carolina in 2007—compared with 15,000 in 1998. Without aggressive action, foreclosures will continue to be a major problem in North Carolina and throughout the entire country. Predatory lending is a significant contributor to the dramatic increase in foreclosures.