State legislators and Gov. Mike Easley said Tuesday they've come up with a plan that could keep as many as 25,000 homeowners out of foreclosure in the next few years.

At a news conference, they promoted legislation that would give some borrowers more time to work with lenders before the foreclosure process begins, David Ingram reports. The legislation would require lenders to notify the N.C. Banking Commission before beginning foreclosure, allowing the commission to help arrange counseling, negotiations and legal advice.

"In a foreclosure, the one thing you can say is everybody loses," Easley said.

A House committee held a hearing on the legislation Tuesday morning. A limited number of borrowers would be eligible for the program, depending on the date that the loan began and other factors.

"They have to be owner-occupied homes," said state Rep. Dan Blue, a Raleigh Democrat and the sponsor of the legislation. "This program is not aimed at speculators."

Industry representatives, consumer advocates and state regulators attended the news conference.

Banking Commissioner Joseph Smith said the program could be in effect by November. He said about 20 commission staff members will work on the program, using current funding.