The N.C. Foreclosure Prevention Fund™ is now helping more than 8,000 unemployed homeowners to keep their homes. Created by the N.C. Housing Finance Agency and funded by the U.S. Treasury, the effort pays the mortgage while workers and others recovering from certain hardships look for jobs or complete job training in a new field.
“The goal is to help responsible homeowners who are struggling through no fault of their own, to protect their homes while they seek new employment,” says A. Robert Kucab, executive director of the N.C. Housing Finance Agency, the self-supporting state agency that designed and manages the effort. “Every foreclosure we can prevent helps the state’s economic recovery by protecting property values and the local tax base.”
So far, the Fund has kept more than $1 billion of property out of foreclosure in 98 counties.
Mortgage payment assistance is provided as a zero-interest, deferred loan of up to $36,000 or 36 months of mortgage-related payments. After the assistance period, homeowners resume making their own mortgage payments. If the owner continues to live in the home for at least 10 years, the loan is considered satisfied and no repayment is required.
The N.C. Foreclosure Prevention Fund™ also provides help for employed North Carolina homeowners who are struggling to pay their second mortgage because of previous unemployment, a cut in salary, or a temporary financial hardship. The Fund may reduce borrowers’ monthly payments by refinancing a second mortgage with a zero-interest, deferred loan up to $30,000. The loan is paid back when the homeowner sells or refinances the home.
Consumers can learn more by calling 888-623-8631 or going to www.NCForeclosurePrevention.gov.