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NC Offers Foreclosure Prevention Fund For Homeowners

In 2016, 26,118 foreclosure filings were made statewide in North Carolina.

NC Foreclosure Prevention Fund

RALEIGH - In 2016, 26,118 foreclosure filings were made statewide in North Carolina.

For many people, struggling to keep up with mortgage payments is a reality.

The NC Foreclosure Prevention Fund offers resources to NC homeowners for keeping their homes while they recover from a financial hardship.

“Foreclosure doesn’t just impact homeowners, it affects the whole state,” said Scott Farmer, executive director of the NC Housing Finance Agency. “Foreclosures can lower property values, disrupt the state’s economy and impact job creation.”

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The NC Foreclosure Prevention Fund, created in 2010, helps pay the mortgage for homeowners who have lost their jobs or are recovering from another financial hardship and homeowners who are earning less than before or on a fixed income after a qualified hardship. The Fund also assists homeowners who are temporarily unemployed due to natural disasters like Hurricane Matthew and Tropical Storms Julia and Hermine.

Homeowners struggling to make their mortgage due to a no-fault job loss or other temporary hardship may be eligible for mortgage payment assistance. This assistance is offered as a zero-interest, deferred, forgivable loan up to $36,000 for 36 months to cover mortgage and related expenses while the homeowner looks for work or completes job training. This assistance is also available for military veterans transitioning from military life to a new civilian career. Eligible veterans can receive assistance while they are enrolled in certain educational programs or looking for a civilian job.

Homeowners who are re-employed after a job loss or other temporary hardship but earning less than before and unable to make mortgage payments as a result may be eligible for a forgivable, no-interest, deferred loan to reduce the principal loan balance so mortgage payments are more affordable. This assistance is also available for homeowners who have transitioned to a fixed income after a job loss or other qualified hardship.

“So far, the NC Foreclosure Prevention Fund has been a solid success statewide in keeping thousands of North Carolina homeowners in their homes while they get back on their feet,” Farmer said. “This program recognizes that a temporary setback doesn’t have to be a permanent loss. Keeping hard-working North Carolinians in their homes is a win-win for families and the state.”

Homeowners apply for assistance through participating HUD-approved housing counseling organizations. To locate a local counseling agency, homeowners can visit www.ncforeclosureprevention.gov or call 1-888-623-8631.