Foreclosure activity reaches

record Mecklenburg's filings

rise 80 percent in August as

job losses put more borrowers

at risk of losing their homes.

By Stella M. Hopkins

Posted: Friday, Sep. 04, 2009

N.C. regulators are looking for new ways to help more homeowners as the foreclosure crisis spreads, hitting another unwelcome record last month.
Statewide, foreclosure filings rose 43 percent in August, compared with a year ago, according to Observer analysis of court data compiled by the state. Filings, which mark the start of foreclosures, rose above 6,500 for the first time last month.
Mecklenburg County saw an 80 percent increase, to 1,316, the second highest number on record for the county.
The foreclosure problem that tipped the nation into recession began with subprime loans, often made to home buyers with sketchy credit and with payments they couldn't afford. The recession has pushed N.C. unemployment to double-digit levels, putting more people at risk for falling behind on payments. In addition, home values have fallen, making it harder for people to sell houses they can no longer afford.
As a result, more prime borrowers – people who had good credit – are facing the threat of foreclosure.
“We've got to do more to reach those people,” said Mark Pearce, N.C. deputy commissioner of banks.
Pearce oversees a program that helps connect homeowners facing foreclosure with counselors. In its first 10 months, the program has reached 5,632 people statewide and linked them with foreclosure-prevention counselors. So far, that's helped 1,790, or more than 30 percent, avoid foreclosure, Pearce said. In Mecklenburg, 218 home owners contacted have avoided foreclosure. ( Learn more at )