Facing a possible foreclosure is one of the most stressful and overwhelming situations a homeowner can be forced to deal with. Whether you’re actively facing foreclosure or just at risk, North Carolina offers free resources to help.
Homeowner Assistance Fund Under Development
North Carolina was allocated $273 million from the Homeowner Assistance Fund, which was established through the American Rescue Plan to prevent mortgage delinquencies, defaults, displacements, and foreclosures for homeowners experiencing financial difficulties after January 21, 2020, due to the coronavirus pandemic.
This program is being supported, in whole or in part, by federal award number HAF0019 awarded to the State of North Carolina by the U.S. Department of the Treasury.
The NC Housing Finance Agency is currently working to develop the HAF plan for submission and approval by the U.S. Department of the Treasury and anticipates the program opening later this fall after Treasury approval.
If you need assistance in the meantime, the State Home Foreclosure Prevention Project offers free housing counseling and can work with servicers on your behalf. Call 1-888-442-8188 to find a counselor in your area.
Free Foreclosure Counseling
Free counseling, regardless of what stage of the foreclosure process you find yourself in, is available through the State Home Foreclosure Prevention Project, administered by the North Carolina Housing Finance Agency. Housing counselors can also work with servicers on your behalf and refer you to free legal services if your income is low. Services are provided by participating HUD-approved housing counseling agencies statewide. To get help, call 1-888-442-8188.
If you’ve been contacted by a foreclosure prevention or “rescue” agency, protect yourself from fraudulent practices by keeping these tips in mind:
- Beware of companies or organizations that require payment upfront—this is illegal in North Carolina.
- Avoid companies that want you to make mortgage payments directly to them, or who tell you not to speak with your current mortgage company or to an attorney.
- Don’t trust investors who offer to pay off your mortgage if you sign over the deed to your home. Typically in these scams, the investor then rents your home back to you or another tenant but doesn’t make the mortgage payments, resulting in foreclosure.
- Only trust companies and organizations that have been verified by your local Better Business Bureau and the Attorney General’s Consumer Protection Division.
- Get all promises and agreements in writing, and do not sign anything until an attorney has reviewed it.
To report a scam or check out a company, call the NC Attorney General’s Office at 1-877-5-NO-SCAM or file a complaint at ncdoj.gov.