North Carolina Newspapers

4 If
Costly and Cumbersome Procedure Unnecessary
To Liquidate Defaulting JNotes wnen uv
;ered ByF.H. A; Guarantee
' In response to many inquiries which
,s"" have been .received by the .-Federal
- Housing Administration concerning
' Insured by it tfiider the provisions of
Title II of the national housing act,
-: it is pointed out' by housing, officials
-', that the administration haa nothing
to do with the foreclosure or the debt
relationship between - the - borrower
and the lender.-'It merely insures
the lender against default by the
borrower: ' ' ;
. When default occurs, foreclosure
proceedings are' instituted only by
the mortgagee (holder of the mort
gage), which in every case is a bank
or other mortgage lending institu
tion, although a method of procedure
has been devised whereby the lend
ing institution can collect the insur
ance without formal foreclosure, thus
saving , the borrower a great deal c
trouble and expense.
Eliminate Foreclosures
sjrbe. act provides a means which
thVdmhustrator' has elaborated in
the registration for liquidating in
sured mortgages, 'which should al
most entirely banish the nightmare
of foreclosure. Not only will the
high costs be eliminated, but the
mortgagor will actually have a period
in which .he can redeem his' property
equivalent to that which he present
ly enjoys, with all the advantages of
realizing a further sum from the ul
timate sale by the administrator,
This orovishm. new to the mort
gage lending.' business, which is a
part of the act and the regulations,
and therefore binding upon the ad
ministrator, permits the mortgagee
and mortgagor the borrower) to ten
der all their interest in the mort
gaged property to the administra
tor in lieu of a foreclosure; If the
mortgagee also stgiees to release the
mortgagor from all Obligations un
der the mortgage the administrator
may .accept the jaopetfcy and shall at
once comply with the provisions for
payment of insurance to the mort
gagee. The administrator further
agrees to hold the jsroperty for a
period of four months otus the statu
redemption period, if there is
such a period in that state where the
property is located. - During this time
the mortgagor may regain his prop
erty by paying a sum .substantially
equal to the mortgage debt. Thus,
he will, in effect, redeem his prop
erty without bearing the almost pro
hibitive costs of foreclosure.
Establish Policy
One of the great difficulties con
fronting the administration has been
the establishment " of a procedure,
fair tp both mortgagee and mort
gagor, by which the mortgagee can
realize the benefits of the mutual
mortgage insurance provided for by
Title II of the national housing act,
if the home owner definitely be
comes unable to carry the burden of
his mortgage.
On the: part of the lender of
money, cumbersome and costly fore
closure proceedings and lengthy re
demption periods Jessen the attrac
tiveness of mortgage loans. Especi
ally hal thU' been emphasized by the
administration, for the larger invest
ing institutions are loath to make
loans in certain states where recent
costs of foreclosures have been from
15 to 25 per cent of the principal
amount of the mortgage indebted
ness. The administration has been
informed that the experience of
mortgagees, in a few states, has been
such that they cannot afford to make
loans to the full amount provided for
by the national housing act unless
foreclosure laws are changed or some
method of foreclosure can be discov
ered which will permit mortgagees
to acquire the security in a reason
able time and without too great ex
pense, in-orde to turn it over to the
administrator and realize the insur
ance benefits. ,-- .
At the same time it is essential
that full consideration- be given to
the difficulties , facing a delinquent
mortgagor.; In times of economic
distress leniency ,to property owner3
becomes 'necessary from a social
standpoint. Moratorium laws, such
as, now exist in , -many, states, are
' serving their purpose. .i But these are
emergency, measures only, and in the
long run will, reaci' unfavorably by
increasing . the ' cost of- mortgage
.financing. ' V- w v v- -
- , v Period of Grace .. v
In ordinary times 4 there, is. likely
to be, a ;f short 1 period y in the life of
; every family; during which sickness,
injury,' or temporary, unemployment
'causes a financial crisis.- In such
cases a period of grace is highly de-
Birable. - Occasionally, however, 'a
family attempts home ownership -on
the basis "of an income which,, for
some ! reason , of other , is hot- sus
tained throughout the - life of the
mortgage obligation. Some mort
gages may, and probably
made and insured by the administra
tor, which are well within the means
of the mortgagor but a subsequent
decrease in income ; will cause the
occupancy of the home to be a luxury
which the morl--cr will not be jus
fned in conf--Irj. In such an
event, it is not only sound business
practice, but to the interest of the
mortgagor, that he find a less expen
sive .home in which to live with his
reduced income. A cheap and speed
foreclosure would be a benefit to him,
as well as to the mortgagee, since
the foreclosure costs are charges
against the mortgagor, and make th
possibility of redemption more re
The administration realizes, how
ever, that by Tar the larger percent
age of foreclosures occur during
periods of economic depression, when
there is practically no market for
property, and no available mortgage
money to refinance. Periods of re
demption are worthless m these
times. For five years, redemption in
the United States have been practic
ally unheard of. If a mortgagor
could pay off his indebtedness dur
ing these times he would need no
redemption statute to assure him that
the mortgagee would return his prop
erty in exchange for the money. Thr
mortgagee would be delighted to gel
his money back.
Protection Given
The national housing net piovid'.-.-protection
for the mortgagor diiiini-;
these periods by preserving an intcv
est for him in the property indefinite
ly. It is contemplated that if th"
mortgagee, having foreclosed, turns
the property over to the administra-1
tor, as he must do in order to obtain
the benefits of insurance, the admin
istrator will hold the property in
definitely until a market for real es
tate again develops. If at that time
the property sells for an amount
more than sufficient to pay off the
indebtedness plus the costs of fore
closure and any expense incurred by
the administrator in handling the
property, the remaining sum will be
paid to the mortgagor. The advant
age of low foreclosure costs to the
mortgagor under an insured mort
gage is thus apparent.
Under the new regulation, an
agreement between the lender and
tne borrower to turn over the prop
erty to the housing administration,
will not merely reduce the costs of
foreclosure proceedings but will
eliminate them entirely. The possi
bility that the mortgagor will even
tually receive something from the
Mr. and Mrs. Hugh Harrell spent
Sunday afternoon with Mr. and Mrs.
Graham Perry.
Samuel Mansfield, Charlie Smith,
Lofton Dale and Willard Stallings
spent Saturday night in Edenton.
Jamie Thach and sister, Louise,
spent Sunday afternoon with Mr. and
Mrs. S. H. Lane.
Joseph Smith called on Miss Mar
tha Lane Sunday afternoon.
Mr. and Mrs. M. B. Dale and chil
dren, Mr. and Mrs. B. P. Monds and
children and Charlie Smith spent
Friday night until bed time with Mr.
and Mrs. A. R. Stallings.
Mr. and Mrs. C. C. Mansfield and
son, Samuel, visited Mr. Henry Mans,
field of Bethel who is ill Friday night.
Margaret Eae and Celia Spivey
returned to their home Sunday in
Edenton after spending the week visit
ing their aunt Mrs. A. R. Stallings.
Peanie Stallings returned home
Tuesday after spending a few days
in Edenton.
Mr. A. J. Mansfield, Annie Ruth
Ward, Virginia Goodwin, Mr. and
Mrs. Murry Elliott were out riding
Sunday afternoon.
Mr. C. A. Perry spent Saturday
afternoon in Hertford on business.
Mr. Preston Rogerson and sister,
Miss Selma, spent Friday afternoor
with Mrs. L. B. Ferry.
Mrs. A. E. Stalling-) spent Fridny
with her mother, Mrs. F. S. D:tk
Miss Lillie Harrell is ill with 1'u,
iiiMiiTw riri
SAL -S. A - Jit .
'!:!. -e who csilcd to sre Mrs. F. T.
vans Sitturd-y afterncun weve Mrs
II. Lane, Mary Ruth and Martin
Harrell and
Willard Stallings, Lofton Dale and
Charlie Smith attended the show in
Edenton Saturday night.
Those who called on Mr. and Mrs.
A. R. Stallings Sunday afternoor
were Mr. and Mrs. Percy Rogerson
and son, Percy Elton, Norman, Char
lie and Elmer Smith, A. J. Mansfield,
Lofton Dale and Alfred Lane.
Mrs. Mack Sanderlin has returned
home after a week's stay at Shaw-boro.
Mr. Alton Moore called on S. H.
Lane Sunday afternoon.
The condition of W. M. Munden,
Beech Spring farmer, remains very
serious. Mr. Munden has been con
fined to his bed by illness for several
Mrs. Morris Hostess
Friday To Rook Club
Mrs. J. E. Morris was hostess to
the members of her Rook Club, and a
few others of her friends, when she
entertained at a delightfful party on
Friday night at her home on Church
Five tables were arranged and
those present included Mesdames T.
L. Jessup, J. H. Towe, Jr., Walter
Dail, W. H. Jenkins, Durwood Reed,
Howard Pitt, Oscar Felton, Cecil
Winslow, Charle3 Skinner, Claude
Withrow, E. S. Douglas, G. W. Bar
bee, Reginald Tucker, Archie Lane,
James Howard, D. S. Darden, R. A.
White, Grady Morgan, and Ernest
Stillman, Misses Mary Sumner and
Elizabeth Knowles.
A salad course was served.
co. y U'
a tel. CK.'ll:
pnliUi: i li at i
the fair.Oiit
foi two must hot,
because ot Its informality, be a slnn-
. Tint, simple hemstitched Irish linen damask clotn wmi
IcriL is (il'tv.foni inehes the rlj'h' StZf tor
id jusl the ri;.'ht ba(:Iii.',round for a tea. service,
rterh lo sip a glass of wine in front ot the i'u-
Madeira wines are served Kl ltei bwscial, and i,:
The regular meeting of the Wo
man's Missionary Society of Bethel
Church met Wednesday afternoon at
the home of Mrs. J. M. Fleetwood.
After the devotional, business was
transacted. Mrs. S. M. Long wa in
charge of the program. She began
intr.i'hietii.i! to the1 t-pic
i, "lie '...mi
For the
two ot
witli a
of th"
lor par
proceeds of the sale of the property
is, of course, enhanced by the sub
stantial reduction in the total costs
of handling the transaction.
Mrs. J. T. Sitison spent a few day.
with her daughter, Mrs. .Shelton V.'.
Moore, of Edenton.
Mrs. John Rogerson, Viola Roger
son and Selma Rogerson, of Great
Hope, called at the home of Mr. and
Mrs. R. S. Chappell Sunday.
Mr. and Mrs. H. L. Thach, of Yeo
pim Station, visited her father, Mr.
J. H. Mansfield, Sunday evening.
James Mansfield visited his sister.
Mrs. W. R. Davenport, near Yeopim
Church Sunday.
Mrs. A. P. Barbier, of Kaukauna,
Wi3.; Mrs. Harold Thach and daugh
ter, Barabara Ann, and Miss Addit
Reed, of Hertford, called at the home
of Mr. and Mrs. C. H. Ward Thurs
day. Miss Addie Mae Ward spent the
week-end at the home of Mr. and
Mrs. C. F. Reed, in Hertford.
with Mi.
home of
M. Fleetwood.
Long. A
1'h a I t;
,,!.s, Mr. and Mr-, .!.
The nice t'ng wa
by the leader, Mrs. YV. I',
very interesting program
Y. W. A.'s Hold Meeting
The Y. W. A.'s of Bethel Baptist
Church met Friday night, January 1!,
was rendered, the subject being
"Ring In the New." Those taking
part in the program were Miss Kath
erine Fleetwood, 0. C. Long, Jr.,
Misses Katie Barber and Esther
Ward, and Mrs. J. M. Fleetwood. A
most entertaining contest was held,
Miss Katie Barber being the winner.
The hostess served candy and apples.
Those present were Misses Pencie and
Esther Ward, Katie Barber and
Katherine Fleetwood; Carroll and
Fentress Hill, Thomas Phillips, 0. C.
Long, Jr., and Mrs. W. P. Long.
an i ; t e
of the
Follow ing adjournment
hour was enjoyed. T!
delicious candlestick salad with home
made fruit cake.
Those present were: Mrs. S. M.
Long, Mrs. C. E. White, Mrs. Seth
Long, Mrs. Mary Hayman, Mrs. J. M.
Fleetwood and two visitors, Mrs. J.
T. Byrum and Mrs. T. T. Harrell.
Final examinations for the fall
term of the Perquimans County High
School, began on Wednesday of this
week, and will last through Friday.
All of the students seem to be study
ing hard, according to F. T. Johnson,
County Superintendent.
Mr. J. Walter White, who has been
living at his home by himself since
the death of his wife in June, has
gone to make his home with his
brother, Mr. W. T. White, in tforth
Edenton. Mr. White has been in
poor health for sometime, and is now
confined to his bed.
Brick brooders are being built by
Catawba poulfrymen for the economi
cal production of broilers this spring.
s ,
!.rlj (oIQJJQOOLW (36 WW (t
i 1. .
- miftSli Tha Naw Standard Chevrolet Coach The New Master De Lxe Chevrolet Coach &&. .
AND UP. List price of New Standard
Roadster at Flint, Mich., $465. With bump
ers spare tire and tire lock, the list price
. is $20.00 additional, Prices subject to
change without notice.
AND UP. List price of Master De Luxe
Coupe at Flint, Mich., $5(i(i. With bump
ers, spare tire and tire lock, the list price
is $25.00 additional. Prices subject to
change without notice.
ERE is America's great family
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thrilling to drive . . yery economical
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CHEVROLET MOTOl COMPANY, DETROIT, MICHIGAN. Compare Chevrolet's low delivered priceand cosy GMA.C. terms. A General Motors Value

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