Press Contact Only:
Margaret Matrone, NCHFA, 919-877-5606,
Connie Helmlinger, NCHFA, 919-877-5607,
Unemployed workers and others facing temporary financial hardships in several western North Carolina counties have a new avenue to seek mortgage help while they get back on their feet.
CCCS of Catawba Valley/Family Guidance Center has joined 40 counseling organizations statewide in offering the NC Foreclosure Prevention Fund™, a mortgage assistance program offered through the NC Housing Finance Agency. CCCS of Catawba Valley serves Alexander, Burke, Catawba and Caldwell counties. [EDITOR: Other local agencies offering the program your area are listed at http://www.ncforeclosureprevention.gov/map_contact_counselor.aspx]
The NC Foreclosure Prevention Fund™ makes mortgage payments for unemployed workers while they seek jobs or complete job training in a new field. Other homeowners, who have gotten behind on their mortgage payments because of divorce, illness or other temporary hardship, may qualify for help while they seek jobs to get back on their feet. Homeowners do not need to be behind on payments to seek help.
The Fund also offers loans to pay off second mortgages for homeowners who are employed but who are unable to make their monthly mortgage payments because of reduced income.
Under the program, 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.
To be eligible, homeowners must have an acceptable mortgage payment history prior to the job loss or hardship, have potential to resume their mortgage payments once the assistance ends, and meet other program guidelines. The job loss or hardship should have occurred on or after January 1, 2008.
The second mortgage assistance is a zero-interest, deferred payment loan of up to $30,000 plus all related fees to pay off an existing second mortgage. This reduces the homeowner’s total monthly payments to a level they can afford. Borrowers must have a good mortgage payment history for six months prior to the hardship. The loan does not need to be paid back until the homeowner sells or refinances the home.
“More than 4,500 homeowners have already been approved for mortgage payment assistance under the Fund,” said A. Robert Kucab, executive director of the NC Housing Finance Agency, the self-supporting state agency that designed and manages the effort. “The goal is to help responsible North Carolina homeowners keep their homes and to support the state’s economic recovery by protecting property values and the local tax base.”
For more information about their eligibility, consumers can call the information line, 1-888-623-8631 or go to www.NCForeclosurePrevention.gov. To contact CCCS of Catawba Valley/Family Guidance Center, call 828-322-1426 or go to www.fgcservices.com.
The NC Foreclosure Prevention Fund™ uses funding from the U.S. Department of the Treasury’s Hardest Hit Fund®, which was authorized under the Emergency Economic Stabilization Act of 2008. It is available in 18 states and the District of Columbia, which have experienced high unemployment or a steep decline in property values. North Carolina was selected because of the large percentage of the population living in counties with high unemployment rates in 2009.
The North Carolina Housing Finance Agency is a self-supporting public agency. It has financed 206,000 homes and apartments in the last three decades, including 83,100 homes for first-time home buyers.