The times-news. [volume] (Hendersonville, N.C.) 1927-current, 1933-07-12
NEWSPAPERS OPINIONS
THE DIRECT COURSE TO AID

Hundreds of home-owners in this part OF tne
country are anxiously looking forward TO the OPEN
ing of the Home Owners Loan Corporation, al
Salisbury and hundreds of applications Tor ald Will
be ready for the corporation to take up Much III
terest therefore exists to the course Oh pioce
dure on part of owners seeking relief Inc uhlteu
States News is printing series OF articles IN guu
ance of the home-owner to the source OF hep' D!
Horace Russell, general counsel OF the feoeral
Home Loan Bank Board and Home-Owners Loan
Corporation the contribution OF immediate lmpor-
lance, being advice as to how the corporation VIII
| refinance mortgages to forestall foreclosure, or
provide funds for taxes and repairs-the latter be-
ing an important consideration.
In the course of his copyrighted article in The
News Mr.. Russell explains that If the home-o"her
has no equity, at ALL nothing can be done, Du' IL
he has an equity, the corporation will Romance up
to 80 per cent of the value of the nome, ProVlueu
the present holder of the mortgage will take tie
bonds of the corporation in settlement of the mort
gage debt.
Anv accrued taxes assessments, necessary re-
nairs and maintenance will be paid in cash, pro-
v;dad the whole advance does not exceed 80 per
cont If the value The corporation is not concerned
With who is the holder of the outstanding mort
gage and will deal with all home owners directly
| alike whether they have borrowed their money
| from insurance companies, mortgage companies
hanks building and loan associations or individuals
| In order to be able to finance up to 80 per cent
of the value however it will be necessary for the
| present holder of the mortgage to take the bonds
| of the corporation.
| Loans NAV be made in cash on homes otherwise
unincumbered to take up past-due taxes or assess
ments or for necessary repairs and maintenance
nm n 80 per cent of the value thereof. Loans may
| ba made in cash to take up mortgages, but not
exceeding 40 per cent of the value of the property
II should be understood, however that there is not
enough money to hquidate any large percentage OF
/ the mortgages in cash and the government IS not
undertaking to do the impossible.
/ Homes lost by foreclosure, sale under trust deed
i or power of attorney or by voluntary surrender 20
the MORTGAGE may be recovered within two years
from the foreclosure but provided, of course, that
| the present holder will take bonds as ne would
| have to do if he still held the mortgage.
! The appraisals made by the corporation will not
he of the technical market value of the house. but
will be ar effort to arrive at the value OF the nome
I to the owner as home or its value to fanny
1 to whom it would be suited as home
! The corporation will not deal with commercial
rent property and will refer typical farm loans TO
/ the Land Banks. Homes, however, will not be ex-
cluded if, incidentally, the owner has garden OF
! small farm, or makes some incidental business use
! of the property. No property can be dealt with II
built for more than four families or II valued at
| more than $4,000. ....
Therefore, home owners will take their problem
up with the manager of the corporation nearest
him very much as he would negotiate with any other
mortgage lender and the manager will assist IN
| explaining the value of the bonds to the present
J mortgage lender.
| 1t is thought that in cases of real distress the
present holder of the mortgage will prefer to have
/ per cent, tax-free bond, with interest guaran-
I teed by the United States rather than to have to
4 foreelose on somebody's home and take piece OF
property upon which he will have to pay taxes and
which viii rapidly deteriorate and which at this
time is not highly Observation-Disclosures Observer.