Richmond County is a step ahead of a new law to protect consumers from foreclosure procedures.

The Consumer Economic Protection Act (CEPA) of 2009, signed this week, put into law two practical ways to deal with foreclosures, said Richmond Clerk of Court Kathy Gainey. The measures are already in place in her court.

Gov. Bev Perdue signed CEPA into law Tuesday, requiring a bond of only 1 percent of the loan balance to appeal a foreclosure. It also allows clerks 60 days to continue the foreclosure process in court for negotiations between the homeowner and lender.

Gainey said this is something already being practiced in this county.

“I’ve always required just 1 percent of the loan balance,” she said. “I feel like the property is secured by a deed, and it isn’t going anywhere.”

A press release from the Governor’s Office says some owners in other parts of the state have been asked to put up the whole amount of the loan balance to appeal the court’s decision and try to keep their home.

Gainey said Richmond County foreclosures are up over the last two years, and eight hearings were scheduled for this week, though four were canceled after an agreement was reached.

“The majority of the time, when they get to me, the bank has already tried to work something out with the homeowner,” she said. “Many homeowners don’t even show up. If they do, we’ll put off the sale date in some cases, but most of the time it’s too late by then.”

Foreclosures can have many negative direct and indirect effects. First of all, a family loses their home and the investment they’ve sunk into it. Then, the value of adjoining properties can go down, and oftentimes, the lender has trouble recouping the money it has in the loan.

Gainey explained that when a foreclosed property goes up for sale at the county courthouse, there are often many bidders at the auction.

“A lot of the time, the bank ends up with it, though,” she said.

In addition to foreclosure protections, CEPA provides protection for North Carolinians against an emerging debt collection practice called debt buying.

Both releases define debt buying as “a new breed of debt collectors that purchase old debts and aggressively file lawsuits to collect on them.”

More information and consumer tips about home loans, debt collectors and many other topics can be found on the Attorney General’s Consumer Protection Division at www.ncdoj.gov.