Over the past few years, thousands of North Carolinians have lost their jobs due to a slow economy. Many homeowners - perhaps you are one of them - have found it very difficult to keep making their monthly mortgage payments and are in danger of losing their home.
The N.C. Foreclosure Prevention Fund offers a Mortgage Payment Program to North Carolina homeowners who are struggling to make their mortgage payments due to job loss through no fault of their own or other temporary financial hardship, such as a divorce, serious illness, or death of a co-signor. Services are provided by HUD-approved counseling agencies statewide.
You may qualify for the Mortgage Payment Program if you are:
- unemployed
- earning less than you have in the past
- facing a temporary financial hardship (for example, you have lost income due to divorce, separation, serious illness, or death of a co-signor)
- have a good mortgage payment history prior to your recent income loss or financial hardship
To participate, you may be behind (or at risk of getting behind) on your payment, or in foreclosure. To those who qualify, the program offers zero-interest loans up to $24,000 to cover your mortgage and related expenses for up to 24 months while you search for or train for a new job. If you live in one of the 50 counties with the highest unemployment, you may be eligible for up to $36,000 over 36 months.
You may be able to get help in one of three ways:
- one-time assistance to bring your mortgage current
- short-term assistance while you are looking for a job
- long-term assistance while you participate in an approved job retraining program
When your application is received and your eligibility is confirmed, the N.C. Housing Finance Agency may place a temporary stay-of-foreclosure for up to 120 days so that the company that owns your mortgage cannot foreclose on your home or take other legal action while your Mortgage Payment Program loan application is under review. If you qualify for the loan, the N.C. Housing Finance Agency will make your mortgage payment directly to your loan provider or bank. At the end of the assistance period, you will resume making your mortgage payment.
If you remain in your home for 10 years, the loan will be forgiven, and you do not have to pay it back. After you have lived in your home for five years, the loan is reduced by 20 percent a year for years six through 10 until you owe nothing. You repay the total amount only if you sell or refinance the home in the first five years, and only if the sale proceeds are sufficient to repay it. Please note that if you refinance your property for better loan terms, we will subordinate our second mortgage; however, if you refinance to consolidate debt or take out cash, the second mortgage loan must be repaid.
For more information, please visit the website at http://www.ncforeclosureprevention.gov/get_help_mortgage_payment.aspx.
If you are thinking of selling your home or are already a few payments behind, give us a call to discuss ways we can help minimize the damage to your credit. Please visit our website for more information on short sales at Charlotte Short Sale Services.
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